India Stocks: India's benchmarks set to open higher as investors assess key data

Natco Pharma

13/02/2025 03:02

Feb 13 (Reuters) - India's benchmark indexes are poised
to open higher on Thursday, as investors digested domestic
inflation data suggesting another rate reduction, while U.S.
inflation reading and trade war concerns kept a lid on risk
sentiment.
    The GIFT Nifty futures  GIFc1  were trading at 23,143, as of
08:29 a.m. IST, indicating that the blue-chip Nifty 50  .NSEI 
will open above Wednesday's close of 23,045.25.        
    Asian markets traded marginally higher, while U.S. equities
fell overnight after data signalled that consumer inflation
picked up more than expected in January, raising prospects of
fewer rate cuts by the Federal Reserve. 
    The U.S. dollar and Treasury yields rose after the inflation
reading.  MKTS/GLOB    
    Data showed India's retail inflation slowed to a five-month
low in January as food price inflation eased, boosting the odds
of another rate cut to support growth.
    While the domestic inflation data released hours before the
U.S. inflation print had raised expectations for further
monetary easing by India's central bank, the strong U.S.
inflation reading challenges that outlook.
    Higher interest rates in the U.S. make emerging markets such
as India less attractive for overseas investors. 
    A sustained bout of foreign outflows from Indian equities
amounting to $10.67 billion in 2025 so far and slowing economic
and earnings growth have hurt markets. 
    The benchmark Nifty is down 12.3% from its all-time high
levels hit in September. The broader markets have fared worse,
with the smallcap index  .NIFSMCP100  trading about 19% below
its record high.
    Meanwhile, trade war fears continued to mount after U.S.
President Donald Trump said he would impose reciprocal tariffs
on every country that charges duties on U.S. imports. 
    The comments came in as Indian Prime Minister Narendra Modi
is due to visit the White House later in the day. The Trump
administration has complained that India has high tariffs that
lock out U.S. imports.
    
    STOCKS TO WATCH
    
    ** India's RBI lifts ban on private lender Kotak Mahindra
Bank  KTKM.NS  issuing credit cards and enrolling clients
digitally
    ** Steelmakers such as Tata Steel and JSW Steel will be in
focus after the country's steel minister says India could impose
a temporary tax of 15%-25% on steel from China
    ** British insurer Prudential  PRU.L  is considering listing
its Indian joint venture with ICICI Prudential Asset Management
    ** Natco Pharma  NATP.NS  posts drop in third-quarter profit
    
    
            
      

 (Reporting by Bharath Rajeswaran in Bengaluru; Editing by
Sherry Jacob-Phillips)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))