Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 51 points at the opening bell. On the macro front, India’s retail inflation eased again in September, government data showed on Tuesday. Consumer price inflation fell sharply to 4.35% in September from 5.3% in August. The Consumer Price Index-based (CPI) inflation was at 7.27% in September 2020.
The Index of Industrial Production has risen 11.9% year-on-year for the month of August as against 11.5% in July, fresh data showed. Last year in August, the IIP had contracted 7.1%.
Overseas, Asian stocks are trading mixed on Wednesday as investors in Asia-Pacific looked ahead to the release of Chinese trade data for September. The three major US stock indices closed lower for a third consecutive session Tuesday ahead of a key inflation reading and a kick-off to the third-quarter earnings season. The Federal Open Market Committee on Wednesday is also set to release its minutes from the September meeting. Investors will be digesting the minutes for any potential clues regarding the central bank’s plans to pull back easy monetary policy.
The International Monetary Fund on Tuesday cut its global growth forecast, citing supply chain challenges and persistent Covid spread. The IMF said central banks like the Federal Reserve should be prepared to tighten monetary policy if inflation runs too hot.
Back home, domestic equity indices settled higher after a volatile session on Tuesday. The S&P BSE Sensex rose 148.53 points or 0.25% at 60,284.22. The Nifty 50 index rose 46 points or 0.26% to 17,991.95. Foreign portfolio investors (FPIs) sold shares worth Rs 278.32 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 741.22 crore in the Indian equity market on 12 October, provisional data showed.
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The economy is recovering but GDP is expected to be only slightly larger than it was in pre-pandemic 2019-20.
The NIP will help augment India’s productive capacity, contribute to our overall growth and bring down the logistics costs, improving competitiveness
Diversification is key and should be followed for stable and steady returns in the long run.
There is a need to continuously facilitate trade and industry and provide thrust to the growth promising sectors of Indian economy.