After a strong rally on Monday—whereby the Nifty 50 surged by 221.75 points (0.91%) to 24,585.05 and the BSE Sensex rose 746.29 points (0.93%) to 80,604.08—institutional optimism met cautious sentiment on Tuesday as investors awaited crucial inflation data from India and the U.S.
At the market open, financial and banking stocks reversed Monday’s gains, pulling the indices into nearly flat territory. By mid-morning, the Nifty 50 hovered around 24,583.8 (down 0.01%), and the Sensex traded at 80,577.9 (inching down 0.03%). Notably, IT stocks showed strength, supported by the extended U.S.–China tariff truce, while small- and mid-cap indices held steady.
Sector Highlights & Stock Movements
IT stocks emerged as market leaders, rising approximately 0.75%, buoyed by improved global trade sentiment.
Financials and banking equities slipped about 0.4–0.6%, reversing their previous day’s rally driven by SBI’s strong earnings.
Indices such as Auto, Media, Metal, and Energy exhibited moderate upside, while Realty lagged slightly.
Triumphs & Setbacks:
Tilaknagar Industries jumped over 8%, powered by robust margins.
IHCL rose nearly 2%, following its intent to acquire majority stakes in hospitality chains.
Ashoka Buildcon gained about 1%.
Praj Industries tumbled nearly 9%, disrupted by weak quarterly performance.
Muthoot Microfin slid over 5% after sharp Q1 profit contraction.
In IPO news, Highway Infrastructure debuted at a remarkable 67% premium, hitting its upper circuit swiftly.
Global context: Oil prices rose on hopes of easing trade tensions; Australian rates dipped to a two-year low; and bond yields in India climbed to six-month highs (~6.44%) amid caution over the rate-easing outlook.
Macro Triggers & What Traders Should Watch
Markets remain on edge ahead of:
U.S. Consumer Price Index release
Indian Retail Inflation data—polls suggest July’s inflation may have fallen to an eight-year low (~1.76%), largely due to softer food prices
These data points are expected to influence the Reserve Bank of India’s stance and global rate expectations.
What This Means for Investors
| Insight | What It Signals |
|---|---|
| Mixed early trade | Investors are awaiting macro data before taking big bets |
| IT strength, financial pause | Defensive sentiment with focus shifting toward IT sectors |
| Volatility persists | Global geopolitics and future interest-rate moves may sway trends |
