BSE Sensex, NSE Nifty might extend gains on wholesale inflation, which kept in the negative zone for the eight straight month.
On Tuesday, BSE Sensex edged lower by 28 points to close at 27,932.90 with auto, bank and realty stocks taking the worst hit after retail inflation rising to a eight-month high dampened rate cut hopes. The fall was, however, cushioned by wholesale inflation.
Indian markets might also extend gains taking its cue from Asian stocks, which extended early gains on Wednesday after a raft of upbeat Chinese data reassured anxious investors after a stock market rout there had heightened worries of a potentially damaging blow to the world’s second-largest economy.
MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.4 percent, though its upside was tempered as Chinese shares were lower in early trade.
Investors were also awaiting other key events, including a Bank of Japan policy decision and congressional testimony by the US Federal Reserve chief.
Chinese shares were lower in early trade, with Shanghai’s benchmark composite index down 1.4 percent, and the CSI300 index of the largest listed companies in Shanghai and Shenzhen falling 1.2 percent.
Japan’s Nikkei stock index advanced 0.5 percent, bolstered by a weaker Japanese currency. The Bank of Japan’s regular policy decision is likely to emerge between 0230-0500 GMT, with no shift expected. Governor Haruhiko Kuroda will speak at 0630 GMT.
Wall Street gained for a fourth straight session on Tuesday, its longest winning streak since January, buoyed by the energy sector as oil prices rebounded from early declines.
Australian shares rose on Wednesday, led by banks, as China reported better-than-expected growth and uncertainty about Greece lessened.
(With inputs from Agencies)