Sensex, Nifty Seen Lower As Investors Await US Inflation Data

(RTTNews) - Indian shares are seen opening slightly lower on Wednesday as investors react to weak global cues and encouraging domestic data.

India's consumer price inflation eased more than expected in August, while industrial production hit a five-month high in July underpinned by robust growth in mining and electricity, separate set of data showed.

The consumer price index posted an annual increase of 6.83 percent in August, slower than the 7.44 percent increase in July. In the same period last year, inflation stood at 7.00 percent.

Nonetheless, inflation remained above the central bank's tolerance band of 2-6 percent for the second straight month.

The annual increase in industrial production accelerated to 5.7 percent in July from 3.8 percent in June. The expected growth rate was 4.8 percent.

Benchmark indexes Sensex and Nifty ended a choppy session on a flat note Tuesday, even as small and mid-cap stocks witnessed significant selling pressure on concerns over valuations after the recent rally. The rupee rose by 9 paise to close at 82.94 against the dollar.

Asian markets traded mostly lower this morning and the dollar inched lower ahead of U.S. inflation data that could influence the Federal Reserve's policy path.

Oil held near 10-month highs on worries about tight supplies, raising concerns about sticky inflation.

U.S. stocks ended lower overnight as surging oil prices deepened worries about inflation and Oracle issue weak guidance.

The tech-heavy Nasdaq Composite lost 1 percent, the S&P 500 slipped 0.6 percent and the Dow finished marginally lower.

European stocks fell broadly on Tuesday as investors braced for a slew of economic data and the ECB policy meeting.

The pan European STOXX 600 eased 0.2 percent. The German DAX dropped half a percent and France's CAC 40 shed 0.4 percent while the U.K.'s FTSE 100 edged up 0.4 percent.