Indian Shares Set To Follow Global Peers Higher

(RTTNews) - Indian shares are seen opening higher on Tuesday, mirroring positive cues from global markets.

Investors will also react to the latest industrial output and retail inflation data released after market hours on Monday.

India's industrial production growth eased notably in July, while consumer price inflation accelerated more-than-expected in August, separate reports showed.

Industrial production logged an annual growth of 2.4 percent in July, much weaker than June's 12.7 percent expansion and the 4.3 percent expected increase.

Consumer price inflation rose to 7.00 percent in August from 6.71 percent in July. In the same period last year, inflation was 5.30 percent. The August rate was also slightly above economists' forecast of 6.9 percent.

It is expected that the RBI will raise the repo rate by another 50 basis points in its meeting at the end of this month.

Benchmark indexes Sensex and the Nifty rose about half a percent each on Monday to extend gains for a third straight session, while the rupee ended up by 6 paise at 79.52 against the dollar, gaining for a third straight session in a row.

Asian stocks were seeing modest gains this morning, gold was little changed, and the dollar nursed losses, as investors looked ahead to the release of U.S. inflation data later in the day for more clues about the Federal Reserve's interest rate move at the upcoming policy meeting later this month.

Oil prices slipped in Asian trade ahead of the OPEC's monthly outlook report de later in the day.

U.S. stocks closed higher for a fourth consecutive session overnight and the dollar weakened amid expectations that inflation may have peaked. Ukraine's military successes in the war with Russia also boosted sentiment.

The Dow rose 0.7 percent, the tech-heavy Nasdaq climbed 1.3 percent and the S&P 500 added 1.1 percent.

European stocks rose for a third day on Monday amid improved risk sentiment.

The pan European Stoxx 600 rallied 1.8 percent. The German DAX surged 2.4 percent, France's CAC 40 index added 2 percent and the U.K.'s FTSE 100 advanced 1.7 percent.