Muted Opening for Indian Markets as Financials Weigh, Inflation Data in Focus

Market Update at 10:30 AM: Indian equity markets opened on a subdued note on Tuesday, as weakness in financial stocks offset gains in other sectors. Investors remained cautious ahead of domestic and U.S. inflation readings that could shape near-term interest rate outlooks.

At 9:22 a.m. IST, the Nifty 50 was down 0.01 per cent at 24,583.75, while the BSE Sensex slipped 0.03 per cent to 80,577.85. Out of 16 key sectoral indices, nine traded higher in early deals. However, financials and banking indices declined 0.4 per cent each, giving up part of Monday’s near 0.9 per cent rally that followed State Bank of India’s post-results surge.

Broader indices such as Small-Caps and Mid-Caps were largely unchanged. Across Asia, market sentiment was muted, with the MSCI Asia ex-Japan index inching up 0.1 per cent as traders reacted mildly to U.S. President Donald Trump’s move to extend the tariff truce with China by 90 days. U.S. CPI data, due later today, is expected to guide the Federal Reserve’s interest rate path.

Pre-Market Update at 7:30 AM: On Tuesday, August 12, the GIFT Nifty signalled a muted opening for the benchmark Nifty index. As of 7:14 AM, the GIFT Nifty was trading near 24,601, up 26 points from the previous close.

Asian markets were mixed, with Japan’s Nikkei hitting a record high, while U.S. markets ended lower overnight. Reports indicate that U.S.-Russia peace talks may take place this week.

Thirteen major companies will announce their Q1 FY26 results today, including Hindustan Aeronautics, Oil and Natural Gas Corporation, Hindalco Industries, Apollo Hospitals Enterprises, Jindal Steel & Power, Zydus Lifesciences, Suzlon Energy, NHPC, Lloyds Metals and Energy, Rail Vikas Nigam, Abbott India, Oil India and NMDC. Investors will watch for updates on Quarterly Results that could influence stock-specific action, particularly in Large-Cap, mid-cap, and small-cap segments.

On Monday, August 8, Foreign Institutional Investors (FIIs) sold equities worth Rs 1,202.65 crore, while Domestic Institutional Investors (DIIs) purchased shares worth Rs 5,972.36 crore. This marked the 26th straight trading session of net buying by DIIs.

Indian equities closed higher on Monday, supported by short-covering and broad-based gains. The Sensex rose 746.29 points (0.93 per cent) to 80,604.08, while the Nifty 50 advanced 221.75 points (0.91 per cent) to 24,585.05.

On Wall Street, U.S. indices closed in the red as traders assessed U.S.-China trade developments. The Dow Jones fell 200.52 points (0.45 per cent) to 43,975.09, the S&P 500 slipped 16 points (0.25 per cent) to 6,373.45, and the Nasdaq declined 64.62 points (0.30 per cent) to 21,385.40.

The United States and China extended their tariff truce by 90 days. U.S. President Donald Trump announced via Truth Social that an executive order was signed to delay a tariff hike until November 10, with all other terms unchanged.

Gold prices edged higher, recovering from the previous session’s decline, as traders awaited U.S. inflation data. Spot gold was up 0.3 per cent at USD 3,355.59 per ounce. Crude oil prices also rose, with Brent crude up 0.30 per cent to USD 66.83 a barrel and U.S. WTI crude gaining 0.25 per cent to USD 64.12.

For today, PNB Housing, PG Electroplast and RBL Bank remain on the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.