Opening Bell : Benchmarks likely to get cautious start amid mixed macroeconomic data
Indian equity benchmarks are likely to get a cautious start amid mixed macroeconomic data, weekly Nifty F&O expiry, and continued selling by foreign institutional investors (FIIs). FIIs net sold Indian equities worth Rs 4,969.30 crore on February 12. Investors will also be keeping tabs on Prime Minister Narendra Modi's first meeting with US President Donald Trump, after he assumed charge for his second term.
Some of the key factors to be watched:
Retail inflation drops in January: Data released by the Ministry of Statistics & Programme Implementation showed India’s retail inflation, based on the Consumer Price Index (CPI), for January stood at 4.31 per cent, dropping significantly from 5.22 per cent in December.
Industrial growth eases in December: Data released by Ministry of Statistics & Programme Implementation (MoSPI) showed that India’s industrial production growth, measured by the Index of Industrial Production (IIP) eased to 3.2% in December, down from a 6-month high of 5.2% in the previous month.
RBI to inject liquidity in banking system: The Reserve Bank of India (RBI) is taking multiple steps to inject liquidity in the banking system that has partially dried up after it heavily intervened in the currency market on Monday and Tuesday to support the rupee. It will hold a 49-day Variable Rate Repo (VRR) auction on February 14 for Rs 75,000 crore in one of the largest long-term liquidity infusion measures. Along with this, the RBI will hold Rs 2.75 lakh crore daily VRR on Thursday.
Piyush Goyal expresses optimism over India’s growth: Commerce and industry minister Piyush Goyal said the combination of growth driven by consumption, alongside growth propelled by investment can serve as twin pillars for India's economic advancement
Natural gas consumption likely to increase by nearly 60 per cent by 2030: International Energy Agency said India’s natural gas consumption is forecast to increase by nearly 60 per cent by 2030, driven by robust growth in city gas distribution, industrial demand, and power generation.
On the global front: The US markets ended mostly lower on Wednesday after a hotter-than-expected U.S. inflation reading added to worries that the Federal Reserve would not cut interest rates anytime soon. Asian markets are trading mostly higher on Thursday as US-Russia talks spurred expectations for an end to the war in Ukraine.
Back home, Indian equity benchmarks erased most of their initial losses but ended marginally lower on Wednesday as traders remained on sidelines ahead of domestic economic data - consumer price index (CPI) and index of industrial production (IIP). Finally, the BSE Sensex fell 122.52 points or 0.16% to 76,171.08, and the CNX Nifty was down by 26.55 points or 0.12% to 23,045.25.
Some of the important factors in trade:
Persistent foreign fund outflows: Foreign institutional investors (FIIs) offloaded equities worth Rs 4,486.41 crore in the capital markets on a net basis on Tuesday, according to exchange data. The latest U.S. tariff developments have worsened outflows, which were already weighing on sentiment.
Sliding rupee: Indian rupee failed to sustain its recovery and depreciated 14 paise to trade at 86.94 (provisional) against the US dollar due to a firm American currency and unending outflow of foreign funds.
Speedy rebound in growth on strong foundation: Union Finance Minister Nirmala Sitharaman said growth in India is witnessing a speedy rebound on account of a strong economic foundation and the government will take measures to ensure that it remains the fastest-growing economy.
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