Indian stock markets opened on a muted note today as investors navigated mixed cues from global markets and domestic inflation data. The benchmark indices saw a cautious uptick, driven by selective buying in IT stocks, but broader sentiment remained cautious amid persistent FII selling.
Market Performance Overview
- Sensex opened at 74,138.81, up 0.18%.
- Nifty 50 opened at 22,501, up 0.15%.
The markets saw early strength in IT stocks, rebounding after recent corrections, while other sectors traded mixed as traders absorbed fresh macroeconomic data.
Key Market Influencers
- CPI Report: Inflation Eases Below 4%
India’s Consumer Price Index (CPI) for February 2025 eased to 3.61%, marking the lowest inflation level in seven months. The key drivers behind the drop were:
- Vegetable prices falling significantly, aiding in lower food inflation.
- Moderation in fuel and housing inflation, contributing to the overall decline.
- Core inflation remaining stable, signaling steady domestic demand.
This cooling inflation raises expectations of a potential rate cut by the Reserve Bank of India (RBI) in the upcoming monetary policy meetings, supporting a positive long-term outlook for equities.
- Institutional Trading Activity
- Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth ₹1,627.61 crore, continuing their cautious stance amid global economic uncertainties.
- Domestic Institutional Investors (DIIs) absorbed the selling pressure, purchasing stocks worth ₹1,510.35 crore, helping the markets avoid deeper losses.
- Sectoral Trends and Reasons for Market Movement
- IT stocks rebounded, with the Nifty IT Index up 0.7%, driven by value buying after the sector recently entered a bear market.
- Banking stocks saw limited movement, as investors assessed liquidity conditions and RBI’s next steps.
- Metal stocks faced selling pressure, reacting to China’s plans to curb steel production, which could impact raw material demand.
- Auto and FMCG stocks traded mixed, as a lower inflation print could benefit consumer demand in the long run.
Commodities Market Update
- Gold prices edged higher, trading at ₹88,120 per 10 grams, as investors sought safe-haven assets amid FII outflows.
- Silver prices declined slightly, trading at ₹98,200 per kilogram, tracking global trends.
- Crude oil prices firmed up, with Brent crude at $70.07 per barrel, supported by a weaker U.S. dollar and demand resilience.
Outlook
The easing inflation figures have sparked optimism about potential monetary easing in the coming months. However, continued FII selling and global trade uncertainties remain concerns. The market is likely to remain range-bound with stock-specific movements, awaiting further clarity on interest rate trends and global trade policies.
Today’s session reflected a balance between inflation optimism, institutional flows, and global cues. Investors should remain watchful of upcoming central bank policies and sector-specific developments to navigate short-term market trends.