The Indian stock market opened on a cautious note, mirroring global uncertainty after the release of the US CPI data. While inflation figures from the US were in line with expectations, they kept market participants on edge regarding the Federal Reserve’s future rate decisions. However, domestic sentiment improved as the session progressed, driven by institutional buying and sectoral resilience.
Market Performance and Major Movers
- Benchmark indices saw a marginal uptick, with the Nifty 50 closing 0.4% higher, supported by gains in IT, pharma, and FMCG stocks.
- IndusInd Bank surged 3%, following reports of increased FII interest and optimism over its improving asset quality.
- Metal stocks declined, with Tata Steel and JSW Steel losing over 1.5%, as China’s steel output restrictions sparked demand concerns.
- IT stocks gained, tracking the positive sentiment in global tech stocks after cooling US inflation figures, suggesting a potential Fed pause.
- Auto stocks remained subdued, as higher input costs weighed on profitability projections.
FII and DII Activity
- Foreign Institutional Investors (FIIs) remained net sellers, offloading ₹792.90 crore in the cash market.
- Domestic Institutional Investors (DIIs) stepped in with strong buying worth ₹1,723.82 crore, stabilizing market sentiment.
Commodities Market Update
- Gold prices eased, trading at ₹87,950 per 10 grams, as cooling US inflation reduced safe-haven demand.
- Silver saw minor corrections, slipping to ₹98,000 per kilogram, following profit-booking after recent highs.
- Crude oil prices climbed, with Brent crude reaching $71.20 per barrel, supported by OPEC’s production cut extension and stronger demand signals.
Outlook
While the easing inflation figures provide some optimism, persistent FII selling and global trade uncertainties keep the market on alert. Investors will closely monitor upcoming monetary policy signals and global trade trends to gauge short-term market direction.
Today’s session reflected a balancing act between institutional flows, sectoral trends, and macroeconomic cues. Market participants should stay attentive to further developments in interest rates and commodity price movements for better positioning in the near term.