India's GIFT Nifty on the NSE International Exchange was down 0.03% to 19,549.50 as of 8:17 a.m. IST.

Retail inflation for June rose to 4.81%, after easing for four months in a row, as food prices surged, according to official data released post market hours on Wednesday.

Analysts cautioned that inflation could rise further in the coming months as vegetable prices are likely to surge due to the erratic and incessant rainfall in northern India.

Wall Street equities closed higher overnight after the U.S. consumer price index for June logged the smallest rise in over two years.

While traders expect a 25 basis-point rate hike by the Federal Reserve on July 26, the modest rise in June inflation could persuade the U.S. central bank to draw the monetary policy tightening cycle to a close.

Asian markets advanced on Thursday, with the MSCI Asia ex Japan rising 1.5%. [MKTS/GLOB]

Investors also digested June quarter results from Tata Consultancy Services and HCLTech.

TCS, helped by large order wins, posted a better-than-expected rise in profit in the June quarter, but warned about near-term softness in demand. Smaller rival HCLTech's earnings missed estimates on weak client spending.

Wipro, Federal Bank, Aditya Birla Money, Tata Metaliks, Angel One, Sterling and Wilson Renewable Energy are among the companies reporting their results on Thursday.

Foreign institutional investors sold 12.42 billion rupees ($151.36 million) worth of Indian equities on a net basis on Wednesday, while domestic investors bought 4.37 billion rupees of shares, as per provisional NSE data.

STOCKS TO WATCH:

** Tata Consultancy Services: Co reports a bigger-than-expected June-quarter profit due to a large orderbook.

** HCL Tech Ltd: Co posts a weaker-than-expected rise in June-quarter profit as its clients cut discretionary spending.

** Lupin Ltd: U.S. FDA inspects the company's Nagpur Oral Solid Dosage Facility and issues a Form-483 with two observations.

** Patanjali Foods: Co's top shareholder to sell up to 9% stake to align with rules on minimum public shareholding.

($1 = 82.0540 Indian rupees)

(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Janane Venkatraman)