By Ambar Warrick
Investing.com-- Singapore-traded futures for India’s bluechip Nifty 50 index jumped to a four-month high on Thursday, priming Indian stocks for a strong open after soft U.S. inflation data triggered a rally on Wall Street.
Nifty 50 Futures rose 1.1% to 17,746 points by 2145 ET (0145 GMT)- their highest level since early-April. The gains come after Wall Street indexes rallied overnight on data showing that consumer price inflation in the United States eased in July from the prior month.
The tech-heavy NASDAQ Composite rose the most among its peers, rising nearly 3%, and marking a 20% recovery from lows hit earlier this year.
Gains in technology stocks, which have been the most-sold this year on fears of rising interest rates, came as investors priced in a lower rate hike by theduring its September meeting.
Indian tech majors including Infosys Ltd (NS: INFY ), Wipro Ltd (NS: WIPR ), HCL Technologies Ltd (NS: HCLT ), and Tata Consultancy Services Ltd. (NS: TCS ) are likely to see outsized gains on Thursday, tracking their peers on Wall Street.
India’s Nifty 50 index is trading around four-month highs on recent strength in metals and automobile stocks, following a strong set of earnings.
Encouraging comments from the Reserve Bank last week, which projected the Indian economy to grow by 7.2% in 2022, have also improved sentiment towards the country's markets.
But India, like most other Asian economies, is struggling with rising inflation amid high fuel and food prices. India's consumer price index peaked at an 8-month high earlier this year, and has remained around elevated levels.
The rupee has also sunk to record lows this year.
The Reserve Bank hiked rates by more than expected last week, and signaled more policy tightening to bring inflation back under its target range.
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