India’s benchmark Nifty 50 index is set to open marginally higher on Thursday after sinking into correction territory in the previous session, while in-line US inflation data boosted expectations of a Federal Reserve rate cut in December.

The Gift Nifty futures were trading at 23,622 as of 08:18 a.m. IST, indicating that the benchmark Nifty 50 will open slightly above Wednesday’s close of 23,559.05.

The Nifty and BSE Sensex logged the biggest single-day drop in nearly six weeks, losing about 1.3% each, as rising domestic inflation dampened hopes of a rate cut by the Reserve Bank of India (RBI) in the near-term and added to worries over dull corporate earnings and $15 billion foreign outflows in the last 33 sessions.

The Nifty closed 10.34% below the record high it hit on Sept. 27, confirming a technical correction, with the Sensex also flirting with the correction territory.

The broader small- and mid-caps also ended their last session more than 10% below the record highs they hit on Sept. 6 and Sept. 24, respectively.

There might be a small bounce after the drop in the last two sessions, but it’s unlikely to change the overall trajectory as uncertainty and indecisiveness among traders prevail, said two traders.

Weak China markets dragged broader Asian shares lower on the day as investors remained unimpressed by Beijing’s latest stimulus measures to support economy.

Indian shares set to open higher after three-session drop

Wall Street equities closed slightly higher overnight as the October inflation data showed consumer prices rising in line with expectations, likely keeping the Fed on track for a December rate cut.

The odds of a 25-basis-points cut next month rose to about 83% from 59% a day ago, according to CME FedWatch.

Among individual stocks, drug maker Cipla could see some pressure after the US drug regulator issued eight observations to the pharma firm’s Bengaluru facility.