Indian stock market is set for a slight rise in its opening on Monday. This comes after a report revealed that the increase in consumer prices in the United States for February was slightly below expectations. The rise was cataloged at 0.3% compared to the expected 0.4% increase. This had followed a revised 0.4% rise in January.
The rate of annual consumer price growth increased to 2.5% in February from 2.4% in the previous month. This figure matched predictions. Moreover, the yearly core consumer price growth rate dropped to 2.8% following a revised increase of 2.9% in January.
Jerome Powell, the Federal Reserve Chairman, during a conference, affirmed that the data was essentially on par with expectations, stating that the central bank does not intend to make hasty cuts to interest rates. Despite recognizing the risks of maintaining current interest rates, he emphasized the importance of consistent control of inflation towards a 2% target.
Investors' attention will also be on the upcoming decision of RBI on interest rates and other macroeconomic data. Automakers may experience increased activity as they disclose March's monthly sales figures.
Citing better management of inflation and macroeconomic stability, Finance Minister Nirmala Sitharaman forecasted that the GDP of India is on course to expand by 8% in the fourth quarter of the 2024 financial year.
In the 2024 financial year, both the 30-share BSE Sensex and the broader NSE Nifty index experienced significant growth, with the former soaring 24.9% to a record high and the latter surging by 28.6%.
Meanwhile, in Asian markets, trading was mostly higher this morning due to a holiday but remained thin after revealing that China's manufacturing purchasing managers index had grown for the first time since September. Swap rates in US Treasury dipped slightly, while oil prices remained steady. The dollar edged lower in Asian trade while the value of gold jumped by more than 1% to trade above $2,250 per ounce.
