BENGALURU (Reuters) – Indian shares edged higher on Monday ahead of the release of key inflation data, while broader Asian peers rose on optimism from the positive tone of the Sino-U.S. trade talks.

The broader NSE Nifty .NSEI rose 0.27% at 11,336.70 as of 0415 GMT, while the benchmark BSE Sensex .BSESN was up 0.24% at 38,211.46.

Indian retail inflation probably reached a 12-month high in September, but still leaving room for further interest rate cuts because it’s expected to remain below the Reserve Bank of India’s target, according to a Reuters poll.

However, India’s industrial output shrank at its fastest rate in more than six years in August, reflecting the impact of an economic slowdown.

India’s growth has been plagued by a drop in demand and flooding due to above-normal monsoon, Barclays analyst Rahul Bajoria said, but indicated that there could be a bounce back in the second half of the year.

“The case remains strong for further support to aggregate demand, and the household sector in particular,” Bajoria wrote in a note.

Metal stocks led gains as the Nifty metals .NIFTYMET rose about 1.1% as commodity prices rose due to the progress in the Sino-U.S. trade talks.

Meanwhile, IT shares fell as India’s No. 2 software exporter Infosys Ltd reported a September-quarter profit that could only meet expectations on Friday, signalling a tricky macroeconomic environment for the sector

Infosys results came after a below-par showing from larger rival Tata Consultancy Services (TCS.NS) a day earlier.

Infosys shares fell 3.44%, dragging the Nifty IT index .NIFTYIT 1%.

Meanwhile, broader Asian peers rose as U.S. President Donald Trump outlined the first phase of a deal to end a trade war with China and suspended a threatened tariff hike, though officials on both sides said much more work needed to be done.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS edged up 0.5%.