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Key Points

Indian markets closed lower as investors awaited key inflation data from India and the US. Financial and FMCG stocks dragged indices down, while auto and IT sectors gained. Analysts warn US inflation could sway Fed policy, impacting global markets. The rupee held steady as oil prices and US data loomed.

Key Points: Sensex Nifty Fall Ahead of US India Inflation Data Amid Tariff Worries

  • Sensex drops 368 points amid pre-inflation data caution
  • Nifty Fin Services and Bank indices lead losses
  • Auto and IT sectors buck the downtrend
  • Rupee remains flat as crude prices weigh
2 min read

Stock market ends lower ahead of key inflation data, tariff concerns

Indian stock markets decline as investors await key US and domestic inflation data amid global tariff concerns, with financial and FMCG stocks under pressure.

"The US inflation figures with any signs of tariff-related impact could influence the Fed’s policy stance. – Vinod Nair, Geojit Investments"

Mumbai, Aug 12

The Indian benchmark indices ended lower on Tuesday as investors awaited the release of July inflation data from both domestic and the US sources amid tariff concerns.

Sensex ended the session at 80,235.59, down 368.49 or 0.46 per cent. The 30-share index started the session in negative territory at 80,508.51 against last session's closing of 80,604.08 as participants awaited the release of July inflation data from both domestic and US sources. The index remained range bound amid heavy volatility.

Nifty settled at 24,487.40, down 97.65 points or 0.40 per cent.

Bajaj Finance, Trent, Hindustan Unilever, Eternal, HDFC bank, Bajaj FinServ, Bel, ICICI Bank, Kotak bank and Reliance were among the top losers from the Sensex basket. While Maruti Suzuki, Tech Mahindra, Mahindra and Mahindra, NTPC, Sun Pharma, Tata Steel and Titan settled higher.

Majority of sectoral indices felt pressure during the trading hours amid persistence selling. Nifty Fin Services dropped 270 points or 1.02 per cent, Nifty Bank fell 467.05 points or o.84 per cent, and Nifty FMCG ended the session 275 points or 0.50 per cent lower. Nifty IT and Nifty Auto settled in green.

Broader indices experienced mixed reaction with Nifty next 50 and Nifty small cap 100 closed flat, while Nifty Midcap 100 descended 154 points or 0.27 per cent. Nifty 100 closed 86 points or 0.34 per cent lower.

The national market reacted with volatility to the ongoing developments in global trade tariffs, reflecting caution following the extension of the US–China tariff truce and ahead of key inflation data due later.

“The US inflation figures with any signs of tariff-related impact could influence the Fed’s policy stance. Meanwhile, domestic inflation is expected to continue below the RBI’s range. Sector-wise, healthcare and automobile stocks posted gains, while financials and real estate weighed on the index. In the near term, stock-specific movements are likely to persist with investors’ attention focused on domestic consumption-led sectors to beat volatility,” explained Vinod Nair, Head of Research, Geojit Investments Limited.

Meanwhile, rupee traded flat near 87.70 as the dollar index hovered around 98.30 with a slightly positive bias. Firm crude prices kept pressure on the rupee, while traders awaited the release of US CPI data later this evening for fresh cues, said experts.

- IANS

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Reader Comments

S
Shreya B
Why are financial stocks taking such a beating? HDFC and ICICI are fundamentally strong banks. This seems like overreaction to global factors that won't affect our domestic banking sector much.
A
Aman W
The market is behaving like a nervous bride before the wedding! Inflation data is important but we should focus more on monsoon progress and rural demand indicators.
P
Priya S
Good time to accumulate quality stocks at lower levels. I've been waiting for this correction to increase my positions in FMCG and pharma. Remember - be greedy when others are fearful!
M
Michael C
As an NRI investor, I'm concerned about the rupee volatility. The RBI should intervene more aggressively to stabilize the currency, especially with crude prices rising again.
K
Kavya N
Small investors like me get nervous seeing these swings. Wish financial news channels would explain things better instead of creating panic. The fundamentals of Indian economy remain strong!
V
Vikram M
The auto sector outperforming makes sense with festival season around the corner. Maruti and M&M have strong order books. This dip in bank stocks might be a golden opportunity though!

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