Sensex, Nifty Set To Follow Global Peers Higher As US Inflation Eases

(RTTNews) - Indian shares may follow global peers higher on Wednesday, tracking firm cues from global markets and amid optimism about domestic growth.

The disinflation process will be "slow and protracted", with the target of 4 percent being achieved only in the medium-term, Reserve Bank of India (RBI) governor Shaktikanta Das said on Tuesday in a speech to the Central Banking Summer Meetings in London.

Adani Group stocks would be in focus today after reports that the Group is in talks with lenders to refinance up to $3.8 billion of a loan facility taken for its acquisition of Ambuja Cements Ltd last year.

Meanwhile, reports indicate that Vodafone Idea plans to infuse a total equity of Rs. 14,000 crore in the near term as part of its business revival plan.

Benchmark indexes Sensex and Nifty rose around 0.7 percent and 0.6 percent, respectively on Tuesday to extend gains from the previous session as positive macro data raised optimism about the growth outlook.

The rupee closed near a two-week high of 82.3675 - closing higher for a third consecutive session on the back of dollar weakness in international markets.

Asian markets traded mostly higher this morning ahead of the Fed and ECB meetings.

The dollar dropped versus its major peers and gold traded flat while oil prices slipped after recovering by more than 3 percent Tuesday from a three-month low.

U.S. stocks rose overnight after data showed the headline consumer price inflation increased by a less-than-estimated 4.0 percent in May on an annual basis, marking the slowest annual rate since March 2021.

The data added to optimism about the Fed pausing its recent interest rate increases at Wednesday's meeting.

The Dow rose 0.4 percent to set a four-month closing high, while the tech-heavy Nasdaq Composite and the S&P 500 gained 0.8 percent and 0.7 percent, respectively to reach their best closing levels in over a year.

European stocks also moved higher on Tuesday, thanks to Fed pause hopes, strong economic data from Germany and China's surprise rate cut.

The pan-European STOXX 600 rose 0.6 percent. The German DAX climbed 0.8 percent, France's CAC 40 added 0.6 percent and the U.K.'s FTSE 100 edged up 0.3 percent.