Indian Stocks set to Track Asian Peers Higher

As of 8:15 a.m. IST, the Indian GIFT Nifty on the NSE International Exchange was up 0.15% at 19,486. On Monday, a small increase in the domestic blue-chip indexes was driven by Reliance Industries.

Following China's support for the real estate industry, which raised hopes for additional stimulus to revive its economy, Asian markets increased by almost 1%. Overnight, Wall Street stocks ended slightly higher.

India’s inflation likely snapped a four-month decline in June due to rising food prices, a poll of economists showed ahead of official data after the close on Wednesday.

Although it is anticipated that the Reserve Bank of India will maintain current interest rates through the end of the year, an increase in inflation could extend the period of high interest rates.

Since the RBI's unexpected rate pause on April 6, the Nifty 50 has increased by almost 10% to reach all-time highs. Analysts anticipate further gains despite the sudden increase.

“We believe (the) rally still has legs,” HSBC Global Research said in a note on Monday, citing tenable valuations, earnings growth, an appealing macro backdrop and favourable external factors. “Any near-term consolidation, if at all, should be shallow,” it said. Foreign institutional investors bought 5.88 billion rupees ($71.3 million) of Indian equities on a net basis on Monday, while domestic investors purchased 2.88 billion rupees of shares, as per provisional NSE data.