Pre-market Update (August 13): Markets likely to open higher on global cues, retail inflation hits 8-year low

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Pre-market update: Indian stock markets are poised to open higher on Wednesday, August 13, tracking strong global cues and a cooling domestic inflation print that may boost investor sentiment.

GIFT Nifty futures were quoting 63 points higher at 24,618, hinting at a firm start for benchmark indices.

Macro cues: Inflation eases to 8-year low
India’s retail inflation dropped to a historic low of 1.55 per cent in July, compared to 2.1 per cent in June. This marks the lowest CPI reading in eight years, driven by deflation in key food categories, although edible oil prices continued to surge amid lingering effects of the Russia-Ukraine conflict.

Rural inflation stood at 1.18 per cent, while urban inflation was higher at 2.05 per cent.

Global markets: Risk-on sentiment lifts equities

Asian markets were trading firm in early hours. The CSI 300 in China gained 0.37 per cent, Hong Kong’s Hang Seng rose 0.94 per cent, Japan’s Nikkei jumped 1.3 per cent, and South Korea’s KOSPI advanced 0.38 per cent.

On Wall Street, investor sentiment remained buoyant after US CPI data for July came in softer than expected, easing concerns over inflationary pressures.

S&P 500 and Nasdaq Composite closed at fresh record highs, rising 1.1% and 1.4%, respectively.

Dow Jones also ended 1.1 per cent higher.

Earnings Watch: Over 20 companies to report today

A packed earnings slate awaits market participants. Companies scheduled to report Q1 results today include:

Bharat Petroleum Corporation, CSB Bank, United Spirits, Aditya Birla Fashion and Retail, Engineers India, Pfizer, Muthoot Finance, Godrej Industries, IRCTC, Jubilant FoodWorks, Kalpataru Projects, Samvardhana Motherson International, Nuvama Wealth, Vishal Mega Mart, among others.

Additionally, Nykaa, Honasa Consumer, Bharat Dynamics, and Suzlon Energy will remain in focus after releasing their earnings post market hours on Tuesday.