INDIA STOCKS-India's benchmark indexes may open higher on soft US, domestic data

March 13 (Reuters) - India's benchmark indexes are likely to open higher on Thursday, tracking global market trends, as investors draw comfort from softer-than-expected inflation data both in the U.S. and domestically.

However, the gains are expected to be limited as U.S. President Donald Trump has threatened to escalate the trade war with additional tariffs on Europe and Canada, following their announcement of retaliatory tariffs in response to his previous trade barriers.

The GIFT Nifty futures GIFc1 were trading at 22,572, as of 07:39 a.m. IST, indicating that the blue-chip Nifty 50 .NSEI will likely open above Wednesday's close of 22,470.50.

Asian markets were mixed on the day, with MSCI Asia ex-Japan .MIAPJ0000PUS up 0.2%. MKTS/GLOB

U.S. consumer prices increased moderately in February, although it is seen as a temporary relief with data not fully capturing the impact of Trump's tariffs.

Higher U.S. tariffs on key trading partners are expected to fuel inflation in the world's largest economy, potentially prompting the Federal Reserve to maintain higher interest rates.

Higher U.S. interest rates are unfavorable for India and other emerging markets, as they make these markets less attractive in comparison with the dollar and Treasuries.

Foreign investors have sold Indian shares worth more than $28 billion since late-September, with 16.28 billion rupees ($186.7 million) on Wednesday as per provisional data.

Investors are also worried that an escalating global trade war could push the U.S. economy into a recession.

Back home, India's retail inflation fell below 4% in February, giving the central bank room to cut rates further in coming meetings.

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($1 = 87.2075 Indian rupees)