A Reuters poll of analysts expects U.S. CPI for January to rise 0.5% month-on-month. High weightage information technology index rose nearly 1.5%, mirroring the overnight gains in tech-heavy Nasdaq Composite index . Nine of the 10 constituents of IT index advanced. Hopes of easing inflation in the United States, from where India's software exporters draw a significant share of their revenue, spurred the move.
"Investors are finding safety in IT sector compared to other sectors like banking, in the light of the Adani saga," said Anita Gandhi, director at Arihant Capital Markets.
The sector's attractive valuations after the recent correction and the relatively less interest rate-sensitive nature compared to manufacturing or banking are also positives for tech stocks, two analysts said.
Twenty-seven of the Nifty 50 constituents advanced with UPL , Infosys , HCL Technologies , Tech Mahindra among the top gainers.
Investors also await third-quarter earnings from a slew of Nifty 50 companies, including Adani Enterprises , Apollo Hospitals , Eicher Motors , Grasim Industries and ONGC .
The rise in retail inflation in January to 6.52%, above the upper limit of RBI's targeted band of 2-6% on higher food prices kept a lid on the gains in domestic equities. Economists flagged the likelihood of more rate hikes from India's central bank post the data. ($1 = 82.5250 Indian rupees) (Reporting by Bharath Rajeswaran in Bengaluru; Editing by Dhanya Ann Thoppil)
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