Indian Shares Seen Tad Higher At Open On Softer U.S. Inflation Data

(RTTNews) - Indian shares look set to open a tad higher on Thursday after the annual rates for both U.S. headline and core inflation eased slightly from June, prompting bets the Federal Reserve would leave its policy rate unchanged at its September meeting.

Closer home, India's consumer price inflation rose slightly to 4.45 percent in July from 4.38 percent in June, led by higher food prices, official data showed on Wednesday. The annual rate was marginally below economists' forecast of 4.50 percent.

Benchmark indexes Sensex and Nifty recouped some early losses to end down around 0.2 percent each on Wednesday while the rupee settled 3 paise higher at 95.33 against the dollar, drawing support from RBI's dollar sales.

FIIs net sold shares worth Rs. 1,002.50 crore on Wednesday while domestic institutional investors net bought shares worth Rs. 5,841.66 crore, according to provisional data on exchanges.

Asian markets were broadly higher this morning as technology shares extended gains on renewed optimism over artificial-intelligence spending.

The dollar index held steady and U.S. Treasury yields edged up slightly while gold was little changed at $4,410 an ounce ahead of the release of U.S. producer price index later today and readings on retail sales and consumer sentiment due on Friday.

Brent crude futures fell more than 1 percent below $88 a barrel, snapping a six-day advance after EIA data showed a massive increase in U.S. oil inventories last week and U.S. President Donald Trump reiterated that the United States is in control of the Strait of Hormuz and there is nothing Iran can do about it.

Meanwhile, after reports emerged that the United States and Iran have agreed to extend a 60-day ceasefire brokered by Pakistan, a senior Iranian official reportedly said there had been no progress in talks to revive a June interim agreement and define a time frame to implement it.