BENGALURU: India’s benchmark index Nifty 50 is set to open higher on Tuesday, tracking the rise in Asian peers ahead of a crucial inflation data and the US Federal Reserve policy decision.

India’s GIFT Nifty was little changed from its overnight close at 21,140.50, as of 8:05 a.m. IST, indicating that the Nifty 50 will open higher than its Monday closing of 20,997.10.

All three major Wall Street indexes posted their new 2023 closing highs, overnight, ahead of key economic data and Fed monetary policy decision. Asian markets rose.

The US Consumer Price Index (CPI) report, due on Tuesday, is expected to show a moderation in inflation, but still above the Fed’s target.

The inflation data and the Fed’s commentary on Wednesday could influence the near-term rate outlook, according to two analysts.

India’s retail inflation likely picked up in November, reversing a three-month decline, due to higher food prices, a Reuters poll found. The data is due at 5:30 p.m. IST.

The Nifty 50 has logged new all-time highs in seven of the previous eight sessions. The blue-chip index clocked its best month in 2023 in November, while the previous week was the best since July 2022.

India’s Nifty 50, Sensex trim gains; global markets’ rally fades

The current rally is bolstered by strong macroeconomic data, a decline in crude oil prices, favourable global interest rate outlook, the resurgence of foreign inflows and sustained inflows from domestic mutual fund investors.

India’s information technology (IT) stocks will be in focus after the country’s No. 2 software company Infosys said on Monday that Nilanjan Roy resigned as its finance chief and would be succeeded by insider Jayesh Sanghrajka.

US-listed shares of Infosys fell 2.66% overnight.