Sensex Open On A High, Back Above 60,000 Mark Ahead Of Inflation Data

Indian equity benchmarks soared early on Monday to a three-week high, extending gains for the third straight session after logging their first weekly climb in three on Friday, ahead of key inflation data later in the day.

Assets considered risky bets rose as the market’s improved sentiment extended to the beginning of the week, which was reflected in broad gains in Asian bourses, global stock futures, and a softening dollar.

The BSE Sensex index gained over 500 points and the broader NSE Nifty index also opened higher.

But that rally may fizzle out as India’s retail inflation data for August, due at 5.30 pm, is predicted to show a surge back to near 7 per cent, snapping a three-month downtrend, according to a Reuters survey of economists.

Those expectations were largely driven by a rise in food costs as prices of essential crops like wheat, rice and pulses were driven higher by a record heatwave, squeezing already stretched household budgets further.

The broader global narrative, though, shows expectations for a more subdued US inflation data, due later in the week, which drove Asian equities higher and the dollar restrained.