FIRST TRADE: Sensex, Nifty open lower despite softer July CPI inflation; HDFC Bank down over 2%
Tracking better inflation print for July, Indian equities started trade on a negative even as Asian markets remained cautious and muted ahead of key economic data due to be released this week.
Indian equities started Tuesday's trade on a tepid note tracking mixed Asian markets as investors awaited a slew of economic readings this week and India's CPI inflation cooled to a 5-year low in July.
Sensex at around 9:16 am was down 0.07 per cent or 53.62 at 79,595.3, while the Nifty index was down 0.12 per cent or 28.65 points at 24,318.35.
Prashanth Tapse, Senior VP (Research), Mehta Equities said, “Our call suggests a rally may be on the horizon, but Nifty bulls could hold off ahead of the crucial July US CPI report on August 15th".
Yesterday's session saw Nifty struggle amidst Hindenburg-Sebi-induced volatility, yet the recovery hints at potential buying opportunities on intraday dips, with confirmation of strength above 24,630. The most positive news this morning is India's retail inflation cooling to a nearly five-year low in July, falling below the RBI's 4 per cent target for the first time in years, added the expert.
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, "Market’s dismissal of the Hindenburg report as inconsequential is significant. This further reinforces investors’ confidence in the success of the buy on dips strategy which has been one of the main driving forces of this bull run. The market which has been climbing all walls of worries has climbed this Hindenburg wall too, instilling confidence in retail investors and DIIs flush with money.
However, it is important to understand that Q1 results indicate slight moderation in earnings growth and, therefore, investors need to expect only modest returns in FY25. Elevated valuations in the broader market continue to be a concern, he added.
Vodafone Idea shares will gain focus in trade today after the company's loss narrowed during the June quarter on the back of lower expenses.
Hero MotoCorp shares will also gain momentum in Tuesday's session as the company will report its June quarter earnings later today after market hours.
Asian markets, meanwhile, traded on a subdued ahead of the key data prints due to be released later today.
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