Indian shares set to open higher as moderating US inflation aids sentiment

Indian shares are likely to open higher on Monday, tracking Asian peers, after a moderation in a key U.S. inflation reading heightened hopes of a Federal Reserve rate cut in June.

The Gift Nifty (GIFc1) was trading at 22,533 as of 8:00 a.m. IST, indicating that the blue-chip NSE Nifty 50 NIFTY will open above Thursday's close of 22,326.90.

Asian markets opened marginally higher, with the MSCI Asia ex-Japan index (.MIAPJ0000PUS) adding 0.2%, after data showed U.S. inflation eased in February.

Fed Chair Jerome Powell said on Friday that the latest inflation reading was in line with the central bank's expectations.

Indian shares closed fiscal year 2024 with gains, aided by strong fund inflows and robust macroeconomic fundamentals. The benchmark Nifty 50 rose about 29% while BSE Sensex SENSEX added 25% in financial year that ended March 31.

"We expect the bullish trend in Indian markets to continue is fiscal year 2025," Rakeshh Mehta, chairman of Mehta Equities, said.

Strong participation from domestic investors and return of foreign investors will bolster the market further, Mehta said.

Foreign portfolio investors turned buyers in Indian equities after selling over the previous two financial years, while domestic mutual fund investors continued to purchase domestic equities for 36 months in a row.

On Thursday, overseas investors bought 1.88 billion rupees (about $22.6 million) of shares on a net basis while domestic institutional investors purchased shares worth 26.92 billion rupees, according to provisional data from the National Stock Exchange.


** Hindustan Aeronautics HAL: Company signed contract worth 11.73 billion rupees for supply of gas turbines.

** HG Infra Engineering HGINFRA: Company received letter of award for a project worth 2.20 billion rupees from Jodhpur Vidyut Vitram Nigam.

** Karnataka Bank KTKBANK: Lender signed pact with ICICI Lombard ICICIGI to distribute their general insurance products.

** Rail Vikas Nigam RVNL: Company's joint venture with Salasar Techno Engineering emerged as the lowest bidder for a project worth $7.2 million from Energy Development Corporation.

($1 = 83.3210 Indian rupees)

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