Shares may extend recovery on positive global cues

Market is seen opening higher tracking positive leads from Asian markets and overnight gains on the Wall Street. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 39 points at the opening bell.

On the data front, India's industrial production (base year 2011-12=100) growth remained nearly flat and healthy at 6.6% in July 2018, compared with 6.9% growth recorded in June 2018. The industrial production growth for June 2018 has been revised marginally downwards from 7% increase reported provisionally. The data was announced after market hours on Wednesday, 12 September 2018.

The all-India general consumer price inflation (CPI) inflation dipped 3.69% in August 2018 (new base 2012=100), compared with 4.17% in July 2018. The corresponding provisional inflation rate for rural area was 3.41% and urban area 3.99% in August 2018 as against 4.11% and 4.32% in July 2018. The core CPI inflation declined to 5.90% in August 2018 compared with 6.29% in July 2018. The data was announced after market hours on Wednesday, 12 September 2018.

Overseas, Asia markets were trading higher. The gains, however, were tampered by enduring concerns around trade following a tweet from US President Donald Trump.

Trump said on Thursday that Washington was "under no pressure to make a deal with China, they are under pressure to make a deal with us." He added that the US "will soon be taking in billions in tariffs & making products at home."

Trump's response came after reports on Wednesday said the US was seeking to restart trade negotiations with China as the two economic powerhouses remain locked in conflict with no resolution in sight.

US stocks closed higher Thursday, with the S&P 500 up for a fourth straight session on the back of strong technology shares. News that China may be receptive to overtures from the US on new talks also soothed trade-related jitters.

On the US data front, the consumer-price index rose by 0.2% in August, its fifth straight increase. Separately, initial jobless claims fell slightly in the latest week, coming in at a 49-year low.

Meanwhile, the European Central Bank (ECB) made no change on interest rates, and repeated that it does not expect any changes until summer 2019 at least as it remains on track to end its bond-buying program in December. The ECB slightly trimmed its GDP growth forecasts for both 2018 and 2019, and ECB President Mario Draghi said that risks to the euro area's growth outlook were "broadly balanced."

Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 1086.39 crore on 12 September 2018, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 541.44 crore on 12 September 2018, as per provisional data.

Key equity indices edged higher on Wednesday, 12 September 2018, after two consecutive sessions of sharp falls. The sentiment, however, was fragile as the rupee touched a fresh low, stoking fears of an interest rate hike by the central bank at its next meeting in October. The Sensex rose 304.83 points or 0.81% to settle at 37,717.96. The Nifty 50 index rose 82.40 points or 0.73% to settle at 11,369.90. The Indian stock market was shut on Thursday, 13 September 2018, on account of Ganesh Chaturthi.

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