On Tuesday, the stock market opened quietly, influenced by the latest economic data releases. India’s consumer price index (CPI) decreased to 3.54% in July 2024, hitting a nearly five-year low and falling below the Reserve Bank of India’s (RBI) 4% target.
Additionally, industrial production (IIP) grew by 4.2% in June 2024. Despite these positive figures, market sentiment remains cautious. Thus, resulting in a flat opening.
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Indian stock market indices sensex began its day 100.55 points lower at 79,548.37, while the Nifty dropped 26.45 points to start at 24,323.60.
Among Nifty companies, the market breadth was balanced, with 25 stocks advancing and 25 declining.
The top gainers in this early trade were ICICI Bank, Apollo Hospitals, Kotak Mahindra Bank, Axis Bank, and Britannia. In contrast, companies like HDFC Bank, Shriram Finance, BPCL, Divi’s Laboratories, and LTIMindtree were among the top losers.
Talking about market’s flat opening, banking and market expert Ajay Bagga, said ‘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.’
What Will Happen In Future?
Further, he also added that market will stay at sideways for now.
‘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.’
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Currently, investors will closely monitor both domestic and international developments, particularly concerning inflation trends, central bank policies, and geopolitical risks, all of which are expected to influence market movements in the near term.
(With Inputs From ANI)
