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Shares may extend recovery on positive global cues

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Market is seen opening higher tracking positive leads from Asian markets and overnight gains on the Wall Street. Trading of index futures on the 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-general consumer price (CPI) dipped 3.69% in August 2018 (new base 2012=100), compared with 4.17% in July 2018. The corresponding provisional 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, markets were trading higher. The gains, however, were tampered by enduring concerns around trade following a tweet from US

Trump said on Thursday that 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 as the two economic powerhouses remain locked in conflict with no resolution in sight.

US stocks closed higher Thursday, with the up for a fourth straight session on the back of strong News that 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 (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 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 at its next meeting in October. The Sensex rose 304.83 points or 0.81% to settle at 37,717.96. The 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

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, September 14 2018. 07:50 IST
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