Sensex, Nifty Seen Opening Up As Economic Data Brings Cheer

(RTTNews) - Indian shares look set to open on a positive note Tuesday after good news on the macro-economic front.

India's retail inflation softened to a three-month low of 5.1 percent in January on moderating food price growth, while industrial output rose at a faster-than-expected pace of 3.8 percent year-on-year in December after easing sharply in the previous month, separate reports showed.

Benchmark indexes Sensex and Nifty fell around 0.7 percent and 0.8 percent, respectively on Monday while the rupee gained 7 paise to close at 83 against the dollar.

Asian stocks traded mixed this morning, with Japanese and South Korean markets rallying as trading resumed after a long holiday weekend.

The dollar held steady ahead of U.S. CPI data later in the day that could provide more clues on the timing of interest rate cuts in the U.S.

Gold was little changed after closing lower in the overnight U.S. trading session. Oil edged up slightly after ending roughly flat on Monday amid demand worries and uncertainty about the pace of potential U.S. interest-rate cuts.

U.S. stocks ended mixed overnight as key inflation data loomed and a Federal Reserve Bank New York survey showed consumer expectations for one-year and five-year inflation growth were unchanged at 3 percent and 2.5 percent in January.

The tech-heavy Nasdaq Composite slipped 0.3 percent and the S&P 500 ended little changed with a negative bias while the Dow inched up 0.3 percent to a record closing high.

European stocks closed higher on Monday after comments from ECB official Fabio Panetta that the time for cutting interest rates was "fast approaching."

The pan European STOXX 600 advanced half a percent. The German DAX climbed 0.7 percent, France's CAC 40 added 0.6 percent and the U.K.'s FTSE 100 finished marginally higher.