Indian markets cautiously await economic updates

Indian equity markets traded in a narrow range on Wednesday as investors adopted a cautious stance ahead of crucial economic data releases in the US and India.

The benchmark Nifty 50 index edged up 0.09 per cent to 24,630.85 points, while the Sensex gained 0.03 per cent to 81,537.02. The market has been relatively subdued in the past few trading sessions, consolidating after a recent uptrend.

Investors are keenly awaiting the US inflation report, which will provide insights into the Federal Reserve’s monetary policy stance. Any indications of easing inflationary pressures could influence global market sentiment and, in turn, impact foreign inflows into Indian equities.

Domestically, the release of November’s inflation data is also eagerly anticipated. Economists predict a moderation in inflation, which could pave the way for potential interest rate cuts by the Reserve Bank of India in its upcoming policy meeting.

Among sectoral indices, metals stocks gained 1.1 per cent on hopes of further easing measures by China, a major consumer of commodities. However, financials and banking stocks declined marginally.

On the individual stock front, Ultratech Cement rose 2.2 per cent after being highlighted as a top pick by CLSA, while NTPC Green Energy gained 2.3 per cent on winning a significant solar power contract.

On the other hand, Avenue Supermarts, a leading retailer, fell two per cent as Goldman Sachs lowered its target price due to concerns over revenue growth.

Attribution: Reuters

Subediting: M. S. Salama