Market Commentary - Pre-Session
Stocks may open slightly lower As on : 13-Jul-23  08:30

GIFT Nifty:

Trading of Nifty 50 index futures on the GIFT Nifty indicates that the Nifty could fall 7 points at the opening bell.

On the macro front, India's retail inflation snapped a four-month decline and grew 4.81% in June as food prices surged, showed government data on Wednesday. CPI inflation was 4.31% in May. Inflation based on the Consumer Price Index (CPI) stood at 4.31% (revised upward from 4.25%) in May and 7% in June 2022.

India's industrial production rose to 5.2% in May from 4.5% in April 2023, mainly due to good performance by the manufacturing and mining sectors, according to the official data released on Wednesday. The factory output growth measured in terms of the Index of Industrial Production (IIP) stood at 19.7% in May 2022.

Global markets:

Overseas, Asian stocks rose across the board Thursday after the U.S. inflation rate for June came in lower than expected.

South Korea's central bank held its benchmark interest rate unchanged at 3.5%, the fourth straight meeting the Bank of Korea has done so after last hiking rates in January. The BOK also forecasted that inflation will rise to around 3% after August, and added the need for an additional hike will be judged ?while assessing the changes in domestic and external policy conditions.?

Wall Street stocks advanced Wednesday following a surprisingly benign US inflation report that raised hopes the Federal Reserve will soon end its monetary tightening campaign.

Headline and core inflation in the U.S. rose at a slower-than-expected pace in June. The Bureau of Labor Statistics' closely watched consumer price index increased by 3.0% annually, down from 4.0% in May. Meanwhile, core CPI, which strips out more volatile items like food and energy, cooled to 4.8% yearly and 0.2% monthly.

Domestic markets:

Back home, the domestic stock market had a slightly negative day on Wednesday after two days of gains. The barometer index, the S&P BSE Sensex slipped 223.94 points or 0.34% to 65,393.90. The Nifty 50 index lost 55.10 points or 0.28% to 19,384.30.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,242.44 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 436.71 crore in the Indian equity market on 12 July, provisional data showed.

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