Mumbai (Maharashtra) [India], August 13 (ANI): The stock market opened on a subdued note on Tuesday, reflecting the latest economic data releases. India’s consumer price index (CPI) eased to 3.54 per cent in July 2024, marking a nearly five-year low, falling below the Reserve Bank of India’s (RBI) target of 4 per cent while industrial production (IIP) recorded a growth of 4.2 per cent in June 2024. Despite these developments, market sentiment remained cautious, leading to a flat opening.
The benchmark Sensex opened 100.55 points lower at 79,548.37, while the Nifty slipped 26.45 points to begin the day at 24,323.60.
Despite the positive inflation data, investor sentiment was tempered by concerns over global economic factors and mixed signals from the domestic market.
Among the Nifty companies, the market breadth was evenly split with 25 stocks advancing and 25 declining.
ICICI Bank, Apollo Hospitals, Kotak Mahindra Bank, Axis Bank, and Britannia emerged as the top gainers in early trade. On the flip side, HDFC Bank, Shriram Finance, BPCL, Divi’s Laboratories, and LTIMindtree were among the top losers.
Ajay Bagga, a prominent banking and market expert, commented on the market’s flat opening, stating, “Global markets are marking time, waiting for the US inflation numbers this week. Indian markets weathered the Hindenburg storm well on Monday. For now, the catalysts remain global, with oil prices rising on the Middle East geopolitical risk. The reduction in the rate of Indian inflation growth for July was on expected lines and will not have much of a market impact.”
He added, “This lower number was due to the base effect of the last years number being very high. It is transient and Indian inflation is expected to cross 4.4 per cent by September once more. The key factors for markets remain geopolitical risk, Fed rate cut trajectory and the BOJ policy actions that have led to a disorderly Yen carry trade unwind. Markets will remain sideways for now, waiting for clarity on these three major themes.”
As the trading day progresses, investors will closely monitor developments both domestically and internationally, particularly in relation to inflation trends, central bank policies, and geopolitical risks, all of which are expected to shape market movements in the near term. (ANI)
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