Nifty and Sensex Likely to Open Lower as CPI Inflation Rises
DSIJ Intelligence-2Categories: Mkt Commentary, Trending
As of 7:12 AM, the GIFT Nifty was trading at 25,165, down 48 points.
Pre-Market Update at 7:30 AM: On Monday, September 15, Indian benchmark indices, the Sensex and Nifty 50, are expected to open lower, tracking mixed cues from global markets. As of 7:12 AM, the GIFT Nifty was trading at 25,165, down 48 points.
India’s retail inflation rose for the first time since October 2024. Consumer Price Index (CPI)-based inflation increased 2.07 per cent year-on-year in August, compared to a revised 1.61 per cent in July, earlier estimated at 1.55 per cent. This data will remain a key factor for investors alongside developments related to the India-US trade deal, India-EU trade deal, the US Federal Reserve’s policy meeting, and flow of foreign institutional funds.
On Friday, September 12, Foreign Institutional Investors (FIIs) were net buyers, purchasing equities worth Rs 129.58 crore. Domestic Institutional Investors (DIIs) also remained buyers, with inflows worth Rs 1,556.02 crore, marking their 14th consecutive session of net buying. Such inflows have supported Large-Cap and Mid-Cap counters, while investors continue to track opportunities in Small-Cap and IPO segments.
On Friday, Indian markets closed higher, with the Nifty 50 finishing above the 25,100 mark. The Sensex advanced 355.97 points or 0.44 per cent to 81,904.70, while the Nifty 50 gained 108.50 points or 0.43 per cent to end at 25,114.00.
US markets ended mixed on Friday. The Dow Jones Industrial Average slipped 0.59 per cent to 45,834.22, while the S&P 500 edged down 0.05 per cent to 6,584.29. The Nasdaq gained 0.45 per cent to 22,141.10, marking a record high close. Over the week, the S&P 500 rose 1.6 per cent, the Dow gained nearly 1 per cent, and the Nasdaq jumped 2 per cent. In Asia, equity markets traded mostly higher in early Monday trade, offering some support to sentiment.
The University of Michigan reported a fall in consumer sentiment for the second consecutive month, with the index at 55.4 in September compared to 58.2 in August, the lowest since May. Inflation expectations for the next year remained unchanged at 4.8 per cent, while the five-year outlook rose to 3.9 per cent from 3.5 per cent.
Gold prices stayed near record highs ahead of the US Federal Reserve’s policy outcome. Spot gold was quoted at USD 3,636.73 per ounce, while US gold futures for December fell 0.2 per cent to USD 3,673.60. Crude oil prices inched higher as Ukrainian drone strikes on Russian refining facilities raised supply concerns. Brent crude futures were up 0.18 per cent at USD 67.11 per barrel, while West Texas Intermediate (WTI) advanced 0.22 per cent to USD 62.83 per barrel.
For today, RBL Bank, HFCL and Oracle Financial Services Software will remain on the F&O ban list.
Disclaimer: The article is for informational purposes only and not investment advice.