Indian stocks see muted opening despite positive global cues
Positive global cues may offer limited support to Indian equities as crude oil prices and Strait of Hormuz tensions remain key risks.
Indian stocks are expected to open modestly as investors and traders assess the impact of prevailing macroeconomic conditions. Despite positive cues from global equities, Indian markets remain cautious due to firm crude oil prices. India's consumer price inflation increased to 4.45% year-on-year, slightly above the central bank's threshold and the June-26 estimate of 4.38% year-on-year.
The growth-inflation backdrop appears stable, with super-core inflation under control and headline inflation driven by food prices. The Reserve Bank of India is likely to maintain its current stance in 2026, with a potential 25 basis points rate hike in the first quarter of 2027. The Federal Reserve's rate decisions will be crucial in shaping sentiment.
Improved global risk appetite, stemming from softer-than-expected U.S. inflation data and strong earnings from AI infrastructure firms, supported technology stocks. However, elevated crude oil prices, stemming from the U.S.-Iran dispute, continue to weigh on domestic equities. Tata Group and Bank Nifty are likely to attract attention following recent developments, potentially setting the tone for market recovery.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
