Pre-market: Nifty seen opening flat; CPI, IIP data eyed

NEW DELHI: The 50-share Nifty index is expected to open flat on Thursday following muted trend seen in other Asian markets. Tracking the momentum, if the index fails to recoup early losses, it may retest its crucial psychological level of 8600 in trade today.

At 07:30 a.m., Nifty India stock futures in Singapore were trading 20 points lower at 8,661 indicating a flat opening on the domestic market.

On the macro front, Industrial production (IIP) data for December 2014 and data for inflation based on combined consumer price index (CPI) for January 2015 which come out later today will keep the markets volatile.

CPI data for the month of January is likely to rise to 5.6 per cent, as compared to 5 per cent recorded in the month of December, said an ET Now Poll.

The December reading for the Index of Industrial Production (IIP) points to a revival in manufacturing but the industry is unlikely to be ecstatic. IIP for the month of December 2014 shrank to 1.8 per cent, as compared to 3.8 per cent recorded in the month of November 2014, added the poll.

The domestic markets extended gains for second straight session on Wednesday, as value-buying picked in beaten down stocks after the recent correction.

Nifty extended the gains of the previous session and concluded higher to close at 8627 adding 61 points to its value. The Sensex concluded with a gain of 178 points at 28533.

"We expect index to consolidate further on Thursday and the macro-economic data would trigger the next directional move," says Jayant Manglik, President-retail distribution, Religare Securities Limited.

"For further recovery, Nifty should decisively close above 8650 otherwise declining trend will resume," he adds. Participants are advised to maintain extra caution in stock selection and stick with the fundamentally strong counters even for trading, added Manglik.

Overnight, US stocks ended flat, as investors were reluctant to make big bets while they waited for the outcomes of major talks involving Greece and Ukraine. But, Apple helped boost the Nasdaq after an activist investor's bullish comments.

"Greek Finance Minister Yanis Varoufakis began tense talks with euro zone finance ministers on Wednesday after his new leftist-led government won a parliamentary confidence vote refusing extend an international bailout," Reuters reported.

"Greece's new leftist government and its international creditors failed to agree on a way forward on the country's unpopular bailout and will try again on Monday," added the report.

Asian markets were trading mixed. Japan's Nikkei 225 index which was trading 1.65 per cent higher at 17,936, Hong Kong's Hang Seng index was trading 0.16 per cent lower at 24,276 and China's Shanghai index was trading 0.18 per cent lower at 3,152.