Nifty Flatlines, Sensex Surges At Pre-Open, Pointing To Mixed Start For Benchmarks

Mumbai, August 13: Indian shares were mixed at pre open signalling an uneven start for benchmarks amid easing oil prices, advancing Asian shares and Middle East uncertainty stemming from deadlocked Iran-US peace talks. 

Nifty 50 rose 0.08% and Sensex advanced 0.49% at pre open. Both benchmarks have diverged many a time ever since the new close mechanism kicked in.  

India’s July retail inflation rose to 4.45%, according to data released after Wednesday’s market close. This is not expected to alter the Reserve Bank of India’s current policy stance or trigger an interest-rate hike in the coming months.  

Laurus Labs, Lenskart, Adani Energy Solutions and Groww are set to enter MSCI’s flagship index as part of the latest periodic review. The changes could lead to increased passive fund flows into the four stocks.  

Bank of America is set to acquire up to a 49.9% stake in the non-banking financial services arm of Jio Financial Services for ₹18,268 crore ($1.92 billion), marking a significant investment in the company’s lending business.  

Apollo Hospitals Enterprise reported a 34% year-on-year increase in quarterly profit. 

Tata Motors posted higher first-quarter profit, citing improving demand for higher-payload trucks, electric vehicles and a strong government order pipeline as key growth drivers. 

Asian Markets Rise 

Asian equities advanced in early trade, with MSCI’s broadest index of Asia-Pacific shares outside Japan rising 1.05%. South Korea’s KOSPI jumped 3.5%, while Japan’s Nikkei gained 1.6%. 

The gains came after U.S. consumer prices rose 0.1% month-on-month in July, matching market expectations. The reading reduced concerns about an immediate tightening of monetary policy by the Federal Reserve and supported sentiment towards riskier assets. 

The relatively benign inflation reading also boosted technology and semiconductor stocks across the region, while expectations of a less aggressive Fed provided some relief to emerging markets. 

Wall Street Ends Mostly Higher 

U.S. equities closed mostly higher on Wednesday as investors assessed the inflation data and its implications for the Federal Reserve’s rate path. 

The S&P 500 rose 0.26% to 7,748.50, while the Nasdaq Composite advanced 0.54% to 26,588.49. The Dow Jones Industrial Average edged down 0.04%. 

Technology and artificial intelligence-linked stocks led the gains. CoreWeave and Super Micro Computer surged 19% each, while Nvidia gained 3%. The semiconductor index climbed around 2.5%. 

Investors, however, remained wary that higher energy prices could put renewed pressure on inflation later this year, particularly as geopolitical risks continue to cloud the outlook. 

European Stocks Remain Subdued 

European equities were largely subdued as investors weighed corporate earnings, geopolitical developments and the impact of energy prices on inflation. 

The pan-European STOXX 600 slipped 0.16%, although the index remained close to record highs. 

European stocks also drew some support from the U.S. inflation reading, which reinforced expectations that the Federal Reserve may have room to keep interest rates steady in September. 

Oil Prices Ease 

Crude oil prices fell on Thursday after major forecasters cut their estimates for global oil demand growth in 2026. 

Brent crude declined 1.2% to $87.90 a barrel, while U.S. West Texas Intermediate crude fell 1.3% to $82.10. 

The International Energy Agency expects global oil consumption to contract by 1.6 million barrels per day this year, while OPEC has lowered its 2026 demand-growth forecast to 580,000 barrels per day. 

A sharp rise in U.S. crude inventories also added pressure to oil prices. Commercial crude stocks increased by 17.4 million barrels in the week ended August 7, marking their biggest weekly rise since January 2023. The build was significantly higher than the 1.4-million-barrel decline analysts had expected. 

U.S.-Iran Talks Keep Risks Elevated 

Despite the decline in crude prices, geopolitical concerns remain firmly on investors’ radar. U.S.-Iran talks remain deadlocked, while risks to shipping through the Strait of Hormuz and Bab el-Mandeb continue to pose a threat to energy supplies. 

An Iranian source cited by Reuters said there had been no progress towards reviving an interim agreement, keeping uncertainty around the region’s oil supply outlook elevated. 

For India, the fall in crude prices is a positive development. A sustained decline in oil prices could help reduce pressure on the country’s import bill, contain inflation and support corporate margins, particularly across oil-sensitive sectors. 

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