Crude above $89 keeps sentiment measured even as Asian markets rally on Fed pause bets. Tata Group stocks in focus after chairman resigns.
Alpha Score of 60 reflects moderate overall profile with strong momentum, moderate value, moderate quality, moderate sentiment.
Indian equities face a subdued start on Thursday. Gift Nifty points lower despite broad gains across Asia. Japan's Nikkei 225 is up more than 1%. South Korea's Kospi has added over 3% after softer-than-expected U.S. inflation data reinforced bets the Federal Reserve will keep rates unchanged at its September meeting.
The overhang for domestic markets remains crude oil. Brent crude eased to below $89 a barrel, but the U.S.-Iran standoff over the Strait of Hormuz keeps the geopolitical risk premium elevated, said Ponmudi R, CEO of Enrich Money. The unresolved situation in the waterway continues to keep sentiment measured, he said.
India's June CPI inflation printed at 4.45% year-on-year, breaching the RBI's threshold for the second month since January. The reading was in line with Elara Securities' estimate near 4.4%. Super-core inflation is contained. The rise in headline CPI is largely driven by food prices, the brokerage said in a note. The domestic growth-inflation backdrop may not warrant a rate hike at this stage, it said. Elara expects the RBI to hold rates through calendar 2026, with a potential 25-basis-point increase in the first quarter of 2027.
Tata Group stocks are likely to stay in focus after the group's chairman resigned, said Hariselvan Radhakrishnan, Founder & CEO of HST Wealth. Bank Nifty's outperformance on Wednesday, up 0.77%, suggests financials could lead any recovery, he said.
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