Indian stock markets are expected to open slightly higher today, with BSE Sensex and NSE Nifty tracking gains across Asian equities and responding positively to the recent decline in domestic inflation rates.
Global cues and local macroeconomic data are driving investor optimism ahead of the trading session.
🌏 Asian Markets Set the Tone
Asian markets showed a largely positive trend this morning. Indices in Japan, South Korea, and Hong Kong posted gains as investors reacted to lower U.S. bond yields and positive earnings forecasts from regional companies.
This upbeat sentiment is expected to influence Indian benchmarks.
📉 India’s Inflation Slows in June
India’s Consumer Price Index (CPI) data for June showed a sharper-than-expected decline. Headline inflation eased to 4.1%, falling below the Reserve Bank of India’s (RBI) upper tolerance level.
This reduction is fueling market hopes for a pause or rate cut in upcoming monetary policy reviews.
📊 Sensex and Nifty Futures Trade Higher
Early trends in SGX Nifty Futures pointed to a modest rise of around 35–50 points, indicating a green opening for Nifty 50. The BSE Sensex is also expected to follow suit with minor gains driven by buying in IT, auto, and banking stocks.
🏦 Banking and IT Sectors in Focus
With inflation falling, investors are watching the banking sector closely. Lower inflation could lead to stable interest rates, benefiting lenders and home-finance firms.
IT stocks may also rise, supported by strong Q1 earnings posted by Infosys and Wipro this week.
💼 Key Domestic Developments Today
Markets are awaiting speeches from Finance Ministry officials and updates on industrial output data, which could shape sentiment for the next trading week.
Meanwhile, foreign institutional investors (FIIs) turned net buyers yesterday, signaling improved confidence in Indian equities.
💹 Rupee and Bond Markets Steady
The Indian Rupee is trading flat against the U.S. dollar at ₹82.94 in early trade, while the 10-year bond yield is hovering near 7.06%, reflecting stable macroeconomic conditions.
🛢️ Oil Prices Fall, Supporting Importers
Global crude oil prices dropped by nearly 1.2% overnight, with Brent Crude at $83.40/barrel. This decline benefits oil-importing nations like India and helps control domestic inflation.
📢 Expert Commentary
Market analyst Ravi Subramanian of Reliance Broking said:
“The fall in inflation and strong global trends are setting the stage for a positive opening. However, volatility may return ahead of corporate earnings and macro announcements.”
🔮 Outlook for the Week
While today’s session looks optimistic, traders remain cautious as upcoming corporate earnings, especially from HDFC Bank and TCS, will play a key role in determining medium-term direction.
