The key domestic benchmarks are set for a soft opening as investors adopt a cautious approach ahead of the Wholesale Price Inflation data to be unveiled by the government on Thursday. India’s wholesale prices fell 2.3 per cent in March 2015 from the same month a year ago, marking the steepest contraction on record. Analysts expect a similar contraction in wholesale prices in the month of April, opening the door for further interest rate cuts by the Reserve Bank of India (RBI) in the near-term. Weakness in the SGX CNX Nifty Index futures for May delivery which fell 0.12 per cent to 8,247.5 at 10:44 am in Singapore and bearish cues from major Asian markets also signals a gap down opening in Indian stocks. Markets in mainland China retreated as China’s new local currency loans for April lagged estimates while a stronger yen bit Japanese stocks. US stocks ended subdued on Wednesday after retail sales failed to grow in April, fueling concerns over the health of the world’s biggest economy.
