Nifty Likely to Open Gap-Up; MSCI Rejig, Six-Year Low CPI Inflation, HAL & Tata Power Q4 Results in Focus
Pre-Market Update: Early indications from the Gift Nifty indicate that the Indian equity benchmark indices are likely to witness a positive start on Wednesday, May 14, 2025.
As of 07:30 am, Gift Nifty hovered near the 24,726 mark, showing a premium of about 90 points over the previous close, signalling a positive opening for the Indian markets.
The primary driver behind the positive opening of the Indian markets is the decline in consumer price inflation, both domestically and in the United States.
India’s retail inflation fell to a six-year low of 3.16% in April. Meanwhile, U.S. consumer inflation eased to an annual rate of 2.3%, down from 2.4% in March.
The moderation in inflation is expected to strengthen the case for further repo rate cuts by the Reserve Bank of India. In the U.S., came below market expectation which indicates minimal impact from President Donald Trump's tariff policies.
India's retail inflation rate, measured by the Consumer Price Index (CPI), eased to a more than six-year low in April. The CPI-based inflation stood at 3.16% year-on-year, compared to 3.34% in March, 3.61% in February, and 4.83% in April of the previous year.
MSCI has announced changes to its indices effective after market close on May 30, 2025.
Coromandel International and FSN E-commerce Ventures are set to be added to the MSCI India Index, which is part of the broader MSCI Global Standard Index. No stocks have been removed from this index in the latest update.
Additionally, 12 new stocks will join the MSCI India Domestic Small Cap Index, while 21 stocks will be excluded from it.
A few prominent Indian companies are scheduled to announce their Q4 earnings today, which could trigger stock-specific moves on Dalal Street.
Hindustan Aeronautics, Eicher Motors, Tata Power Company, Shree Cements, Lupin, Muthoot Finance, Torrent Power, Hitachi Energy India, Berger Paints India, Jubilant Foodworks, Apollo Tyres, and Piramal Pharma will announce their Q4 earnings today.
On May 13, Foreign Institutional Investors (FIIs) were net sellers, selling ₹476.86 crore worth of shares. Domestic Institutional Investors (DIIs) bought shares worth ₹4,273.80 crore during the same period.
On Tuesday, the Indian equity market witnessed a sharp decline as investors booked profits following the previous session’s nearly 4% surge in benchmark indices. The Sensex dropped by 1,281.68 points, or 1.55%, ending the day at 81,148.22. Meanwhile, the Nifty 50 fell 346.35 points, or 1.39%, to close at 24,578.35.
Asian markets saw mostly positive movement on Wednesday, tracking overnight gains from Wall Street, as investor sentiment improved amid signs of easing trade tensions between the US and China. Supporting the sentiment was a decline in U.S. consumer price inflation.
U.S. markets closed on a mixed note. The Dow Jones Industrial Average slipped by 269.67 points, or 0.64%, ending at 42,140.43. In contrast, the S&P 500 gained 42.36 points, or 0.72%, finishing at 5,886.55. The Nasdaq Composite outperformed, advancing 301.74 points, or 1.61%, to settle at 19,010.09.
In April, U.S. consumer prices showed a moderate uptick, with the Consumer Price Index (CPI) rising by 0.2%, slightly less than expected. On a year-over-year basis, CPI inflation stood at 2.3% in April, slightly lower than the 2.4% recorded in March.
Gold prices edged slightly lower as easing tensions between the US and China reduced demand for safe-haven assets. Spot gold dipped 0.1% to $3,246.21 per ounce, while Indian gold futures increased by 0.8% to ₹93,647.
Meanwhile, crude oil prices hovered near their highest levels in two weeks, supported by progress in US-China trade talks and a weaker US dollar. Brent crude slipped 0.44% to $66.34 per barrel, and US WTI crude dropped 0.42% to $63.40. Both benchmarks had surged over 2.5% in the previous session.
Disclaimer: The article is for informational purposes only and not investment advice.
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