Nifty and Sensex follow Gift Nifty, eye a flattish open

• India’s Nifty and Sensex eye a subdued start on Thursday, following an upbeat close on Wednesday.
• Nifty and Sensex cheered positive European equities and softer Indian WPI inflation data.
• Nifty and Sensex traders gear up for India’s trade data and a fresh batch of US statistics.

The Sensex 30 and Nifty 50, India’s key benchmark indices, are set to open on a flat to lower side this Thursday, after a positive close on Wednesday. Gift Nifty, rebranded from SGX Nifty, is trading 0.05% lower on the day, suggesting a muted open for Nifty and Sensex.

The Indian indices defied the early bearish sentiment, tracking the advance in their European counterparts amid a recovery in risk sentiment while softer India’s Wholesale Price Index (WPI) inflation data also added to the renewed optimism.  

The National Stock Exchange (NSE) Nifty 50 index finished Wednesday at 21,840 while the Bombay Stock Exchange (BSE) Sensex 30 settled at 71,833. Both indices gained roughly 0.40% on the day.

Stock market news

• Nifty and Sensex rebounded on Wednesday, courtesy of the solid recovery in the banking sector stocks.
• The top five gainers on the Nifty were BPCL, SBI Bank, ONGC, Coal India and Tata Steel. Meanwhile, the top losers were Tech Mahindra, Cipla, Dr Reddy's, Infosys and TCS.
• Yubi, a credit platform, has entered a co-lending partnership with Axis Bank and Muthoot Microfin.
• Indian automaker Mahindra & Mahindra’s standalone profit after tax rose 60.6%) in the three months to Dec. 31, missing analysts' estimate.
• Paytm shares fell to a fresh record low of Rs 342.15 after falling nearly 10% following the downgrade by the brokerage firm Macquarie. This came after the Reserve Bank of India's (RBI) recent regulatory action against Paytm Payments Bank.
• The Indian WPI inflation dropped to 0.27% in January, as against a 0.73% increase in December. The data missed the market consensus of 0.53%.
• The Lunar New Year holidays in China could keep the liquidity thin around the Indian indices.
• All eyes now turn toward the top-tier US Retail Sales report and India’s trade deficit data for trading impetus in Nifty and Senxex indices.
• Following Tuesday’s hot US Consumer Price Index (CPI) data, markets are pricing in a no Fed rate cut in March and a lower than 50% chance of easing in May.