New Delhi [India], September 12 (ANI): Indian stocks opened the new week with gains after extending their advances for the third straight day.
Prior to last Thursday, the benchmark indices, the Sensex and Nifty, declined for two sessions due to the possibility of rash interest rate increases in the US to combat inflation, as suggested by the US Federal Reserve.
At 9.25 am, the Sensex was up 190.15 points, or 0.32 percent, and the Nifty was up 62.45 points, or 0.35 percent, at 17,895.80 points.
The strong GDP rebound currently under way in India is the most significant bullish element that has contributed to and is maintaining the country’s market outperformance, according to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Retail inflation figures for August, which the National Statistical Office will release this evening at 5.30 pm, will be closely watched for any new clues.
According to figures from the National Statistical Office (NSO), food and oil prices decreased in July, which contributed to India’s retail inflation dropping to 6.71 percent, the lowest level in five months.
Retail inflation, however, has exceeded the Reserve Bank of India’s upper tolerance limit of 6% for the seventh straight month. In June, the retail inflation rate was 7.01 percent.
Analysts predict that India’s retail inflation would likely stay high in August, primarily due to an increase in the cost of various foods.
Investors will be anticipating the macroeconomic statistics, including the Consumer Price Index (CPI) and Index of Industrial Production (IIP), which will be released later in the day. However, caution may be warranted given that the RBI’s headline foreign exchange reserves decreased by USD 7.9 billion to USD 553.11 billion in the week ending September 2, according to further data.
The central bank’s operations to maintain stable rupee exchange rates are mostly to blame for the reserves falling to their lowest level since October 9, 2020. (ANI)