Indian shares set for flat open ahead of inflation data, earnings

Indian shares are set to open little changed on Wednesday, with investors eyeing both domestic and U.S. inflation data for June as the quarterly results season kicks off.

India's GIFT Nifty on the NSE International Exchange was down 0.01per cent at 19,535.50, as of 8:00 a.m. IST.

All eyes are on India's inflation print, due after market hours on Wednesday. Retail inflation likely snapped a four-month decline in June due to rising food prices, a Reuters poll of economists showed.

Analysts expect the momentum in markets to continue and identified corporate earnings, monsoon trajectory and macroeconomic stability as major near-term triggers.

Information technology firms Tata Consultancy Services (TCS.NS) and HCLTech (HCLT.NS) are among the firms scheduled to report their quarterly earnings, post market hours on Wednesday.

Asian markets (.MIAPJ0000PUS) rose over 0.5per cent, mirroring gains in Wall Street, ahead of the U.S. inflation data.

The U.S. consumer price index is expected to have risen by 3.1per cent in June, likely to be the lowest since March 2021, easing rate concerns.

The odds of a 25 basis-point rate hike by the U.S. Federal Reserve at its upcoming policy meeting on July 26 stood at 92.4per cent. However, moderation in inflation could steer the Fed closer towards ending its policy tightening cycle.

The domestic blue-chip indexes rose on Tuesday, led by a rise in auto and consumer stocks.

The Nifty 50 (.NSEI) came within 10 points of its record high levels on Tuesday. Both the benchmarks have risen nearly 12per cent so far in fiscal 2024. The broader markets have outperformed the bluechips, with smallcaps (.NIFSMCP100) jumping over 24per cent and midcaps (.NIFMDCP100) adding almost 21per cent.

Foreign institutional investors bought 11.97 billion rupees ($145.4 million) of Indian equities on a net basis on Tuesday, while domestic investors sold 72.5 million rupees of shares, as per provisional NSE data.

STOCKS TO WATCH:

Delta Corp (DELT.NS), Nazara Technologies (NAZA.NS): GST council has imposed a 28per cent tax on the turnover on online gaming companies, horse racing and casinos.

PVR-Inox (PVRL.NS): GST council agrees to reduce tax on food and beverages at cinema halls to 5per cent from 18per cent earlier.

Sterlite Technologies (STTE.NS): Co partners with communications and softwar firm Windstream to enable fast fibre connectivity in the U.S.

Plastiblends India (PLST.NS): Co reports fall in net profit in June quarter.

($1 = 82.3500 Indian rupees)