Nifty, Sensex Set for Positive Start on Softer Inflation Data
DSIJ Intelligence-2Categories: Mkt Commentary, Trending
The GIFT Nifty was trading near 24,617, up 114 points from the previous close at 7:12 AM, indicating a firm opening for the benchmark indices.
Pre-Market Update at 7:30 AM: On Wednesday, August 13, domestic markets are set for a buoyant start as easing inflation trends in both India and the US lift investor sentiment. The GIFT Nifty was trading near 24,617, up 114 points from the previous close at 7:12 AM, indicating a firm opening for the benchmark indices. India’s annual Consumer Price Index (CPI) eased sharply to 1.55 per cent in July 2025 from 2.1 per cent in June. The softening inflation signals a favourable environment for growth-supportive monetary policy, which could benefit sectors like Large-Cap financials, consumer durables, and Mid-Cap manufacturing companies.
In the US, the annual inflation rate held steady at 2.7 per cent in July, below the market forecast of 2.8 per cent. This stability, despite tariff pressures under President Donald Trump’s administration, fueled optimism for a potential Federal Reserve rate cut next month. On Tuesday, the S&P 500 and Nasdaq closed at all-time highs, with the Dow Jones Industrial Average gaining 483.52 points (1.10 per cent) to close at 44,458.61. The S&P 500 rose 72.31 points (1.13 per cent) to 6,445.76, while the Nasdaq surged 296.50 points (1.39 per cent) to 21,681.90.
On August 12, Foreign Institutional Investors (FIIs) sold equities worth Rs 3,398.80 crore for the second consecutive session, while Domestic Institutional Investors (DIIs) extended their buying streak to 27 days, purchasing shares worth Rs 3,507.93 crore. The Nifty 50 closed 0.4 per cent lower at 24,487.40, while the Bank Nifty dropped 0.84 per cent to 55,043.70. Realty and consumer durables declined, whereas pharma, metals, auto, and oil & gas saw gains.
Several large-cap, mid-cap, and Small-Cap companies are set to announce their Q1 FY26 Quarterly Results today, including Bharat Petroleum Corporation, Max Healthcare Institute, Muthoot Finance, Samvardhana Motherson International, United Spirits, Vishal Mega Mart, Fertilisers and Chemicals Travancore, IRCTC, Jubilant Foodworks, Anthem Biosciences, Godrej Industries, Endurance Technologies, ITI, AIA Engineering, and Deepak Nitrite. Stock-specific movements are expected based on earnings surprises, dividend declarations, or bonus and rights issue announcements.
The US dollar index stood at 98.02 after a 0.5 per cent drop on Tuesday, as rate-cut expectations and political uncertainty pressured the currency. Gold prices held firm, with spot gold up 0.08 per cent at USD 3,350.33/oz. Crude oil prices were steady, with WTI futures near USD 63 per barrel and Brent futures around USD 66 per barrel, as rising US inventories signalled waning summer demand.
For today, PNB Housing, PG Electroplast, Titagarh Rail System and RBL Bank remain on the F&O ban list.
Disclaimer: The article is for informational purposes only and not investment advice.