Sensex, Nifty Surge Expected as Inflation Eases

Post by : Rajat Arora

Sensex, Nifty to Open Higher Today as Inflation Shows Signs of Cooling

In a fresh wave of optimism, the Stock market today: Sensex, Nifty likely to open positive as inflation cools—a welcome sign for investors who’ve weathered recent volatility. A cooling inflation rate is a strong signal that the Reserve Bank of India (RBI) may maintain or even soften its monetary stance, providing breathing space for businesses and boosting investor confidence. As the markets gear up for today’s session, traders are keeping a close eye on indices, sectors, and macroeconomic trends that could shape the week ahead.

Inflation Data Sparks Bullish Sentiment

The Consumer Price Index (CPI) inflation for the previous month came in lower than expected, registering at 4.83%, compared to 5.09% in the earlier reading. The drop, although modest, has significant implications. A cooling inflation rate is typically seen as a green flag by central banks, indicating that rate hikes can be paused or even reversed.

This development has fueled positive sentiment, with many analysts predicting that the Stock market today: Sensex, Nifty likely to open positive as inflation cools and continue showing strength during the trading session.

SGX Nifty Indicates a Green Start

The Singapore Exchange Nifty (SGX Nifty), an early indicator of how Indian markets might perform, traded nearly 100 points higher early in the morning. This upward movement points to a buoyant opening for the Nifty 50 and reinforces the headline that the Stock market today: Sensex, Nifty likely to open positive as inflation cools.

With global cues also looking relatively stable, aided by cooling U.S. inflation and hopes of Federal Reserve interest rate moderation, Indian markets appear poised for a constructive start.

Global Markets Provide Supportive Backdrop

Asian markets opened on a mixed note but leaned toward the positive, with Japan’s Nikkei and South Korea’s KOSPI seeing modest gains. In the U.S., the Dow Jones and S&P 500 closed slightly higher, reflecting confidence in the upcoming earnings season and economic stability.

These global cues often act as a bellwether for domestic investor sentiment, and today is no different. The international support, combined with cooling inflation domestically, sets the tone that the Stock market today: Sensex, Nifty likely to open positive as inflation cools across all metrics.

Sector Watch: Who Could Lead the Rally?

1. Banking & Financials

These sectors are likely to be in focus as lower inflation reduces pressure on interest margins. Banking stocks, especially private lenders like HDFC Bank, ICICI Bank, and Axis Bank, may gain traction.

2. FMCG

With cooling inflation, input costs for FMCG players could decline. Companies like Hindustan Unilever, Dabur, and Britannia may witness buying interest as margins improve.

3. Auto Sector

The auto sector often benefits from lower inflation and stable fuel prices. Maruti Suzuki, Tata Motors, and Hero MotoCorp may ride this positive sentiment wave.

4. Real Estate

Rate-sensitive sectors like real estate could also respond favorably. Lower inflation supports better home loan rates, boosting demand in urban housing.

Investors and traders alike are looking closely at these pockets for signs that the Stock market today: Sensex, Nifty likely to open positive as inflation cools will reflect more than just index-level enthusiasm—it may spark a sector-wide rally.

What Are Analysts Saying?

Market experts from top brokerage firms are optimistic:

• Motilal Oswal Financial Services noted that a softer inflation figure is a welcome change and will encourage midcap and smallcap participation in the current uptrend.

• HDFC Securities commented that the moderation in inflation brings relief, particularly when combined with expectations of strong quarterly earnings from blue-chip firms.

• ICICI Direct analysts stated, “We expect the Sensex and Nifty to open higher and sustain gains throughout the session, supported by strong macroeconomic cues and global support.”

These expert opinions further validate the headline: Stock market today: Sensex, Nifty likely to open positive as inflation cools.

Technical Outlook: Key Levels to Watch

Nifty 50

• Support: 22,050

• Resistance: 22,400

• A break above the 22,400 mark could indicate bullish continuation, while a dip below 22,050 might trigger mild correction.

Sensex

• Support: 72,900

• Resistance: 73,700

• Watch for heavy volumes near these levels for any breakout or breakdown confirmation.

As traders plan their intraday strategies, these technical markers will serve as checkpoints for evaluating whether the Stock market today: Sensex, Nifty likely to open positive as inflation cools will hold momentum through the day.

Investor Strategy: What Should You Do?

For long-term investors:

• Continue SIPs and avoid reacting to short-term volatility.

• Use dips in fundamentally strong sectors like banking and FMCG as buying opportunities.

For short-term traders:

• Watch the opening trends carefully.

• Look for breakout patterns in rate-sensitive stocks.

In essence, whether you are a cautious investor or an aggressive day trader, the underlying narrative that the Stock market today: Sensex, Nifty likely to open positive as inflation cools provides enough justification to stay engaged and prepared.

Disclaimer
The information provided in this article is for general informational purposes only and does not constitute financial, investment, or trading advice. While DXB News Network strives to ensure accuracy and timeliness, we do not guarantee the completeness or reliability of the content presented. Readers are advised to consult with a qualified financial advisor before making any investment decisions. DXB News Network is not responsible for any financial losses or actions taken based on the information provided in this article.

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