Benchmarks trade lower amid surge in domestic retail inflation

Indian equity benchmarks made a cautious start on Thursday and soon lost momentum amid persistent geopolitical tensions and uncertainty around U.S.-Iran talks. Also, surge in domestic retail inflation data for yet another month weighted on market sentiments. India’s retail inflation, measured by the All-India Consumer Price Index (CPI), rose to 4.45% in July 2026 from 4.38% in June 2026, as food prices remained elevated. Though, downside remained capped as crude oil prices eased after the Organization of Petroleum Exporting Countries (OPEC+) forecasted lower demand for the commodity in 2026 as higher prices due to the US-Iran war weighed.

Both Sensex and Nifty were trading lower in early deals as some cautiousness came amid foreign fund outflows. Foreign institutional investors (FIIs) turned net seller on Wednesday, offloading Indian equities worth Rs 1,002.50 crore. However, buying in Telecom, Auto and some financial stocks limit the losses. In stock specific movements, Jio Financial Services traded higher amid reports that 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 Rs 18,268 crore ($1.92 billion), marking a significant investment in its lending business.  

On the global front, most of the Asian markets were trading higher as technology shares rebounded. The US inflation numbers for July also came in line with expectations, easing worries about monetary tightening in the world’s largest economy. South Korea’s Kospi leading the Asian markets as shares of Samsung Inc and SK Hynix surged.

The BSE Sensex is currently trading at 77810.09, down by 156.26 points or 0.20% after trading in a range of 77709.63 and 78119.39. There were 12 stocks advancing against 17 stocks declining, while 1 stock remain unchanged on the index.

The top gaining sectoral indices on the BSE were Telecom up by 0.73%, Industrials up by 0.61%, Auto up by 0.59%, Capital Goods up by 0.30% and FMCG up by 0.26%, while Metal down by 0.73%, Consumer Durables down by 0.41%, Basic Materials down by 0.39%, Energy down by 0.34% and Bankex down by 0.23% were the top losing indices on BSE.

The top gainers on the Sensex were Interglobe Aviation up by 1.47%, Tech Mahindra up by 1.18%, Eternal up by 1.12%, NTPC up by 0.95% and Bajaj Finance up by 0.71%. On the flip side, Titan Company down by 1.38%, Ultratech Cement down by 1.28%, Reliance Industries down by 1.14%, Kotak Mahindra Bank down by 0.78% and ICICI Bank down by 0.76% were the top losers.

Meanwhile, marking a significant step towards strengthening trade and economic engagement between India and the Southern African states, India and the Southern African Customs Union (SACU) have signed the Terms of Reference (ToR) for negotiations towards a Preferential Trade Agreement (PTA). The signing of the ToR reflects the shared commitment of India and SACU to advancing mutually beneficial trade relations and lays the foundation for negotiations towards a balanced, mutually beneficial and development-oriented PTA. The five SACU member states are Botswana, Eswatini, Lesotho, Namibia and South Africa.

Union Minister of Commerce and Industry Piyush Goyal has called for a balanced, fair and equitable trade agreement between India and SACU, emphasising that the partnership can help diversify markets and create opportunities for both sides to prosper. He said India can play an important role in supplying affordable medicines and supporting the development of new talent in the IT sector in the SACU region. He added that India can also help integrate SACU countries into global supply chains in areas where their businesses are competitive and where skills and talent can be developed or are already available.

Executive Director, Ministry of International Relations and Trade, Government of the Republic of Namibia, Ndiitah Nghipondoka-Robiati, welcomed the signing of the ToR as an important step towards formalising SACU-India engagement and providing structure, transparency and predictability to the forthcoming negotiations. Highlighting India’s importance as a strategic partner and a pillar of South-South cooperation, she noted the longstanding relationship between India and Africa through trade, investment, capacity building and development cooperation.

The CNX Nifty is currently trading at 24346.35, down by 89.60 points or 0.37% after trading in a range of 24316.30 and 24431.60. There were 14 stocks advancing against 36 stocks declining on the index.

The top gainers on Nifty were Tata Motors Passenger Vehicles up by 2.24%, Shriram Finance up by 1.41%, JIO Financial Services up by 1.37%, Tech Mahindra up by 1.16% and Eternal up by 1.02%. On the flip side, Hindalco Industries down by 2.18%, Ultratech Cement down by 2.15%, Grasim Industries down by 1.95%, Dr. Reddy's Lab down by 1.26% and Reliance Industries down by 1.23% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 1165.94 points or 1.73% to 68,690.00, Taiwan Weighted jumped 457.72 points or 1% to 45,975.79, KOSPI rose 294.83 points or 4.29% to 6,873.87, Hang Seng strengthened 16.83 points or 0.07% to 25,457.00 and Shanghai Composite added 16.47 points or 0.42% to 3,963.15. On the other hand, Jakarta Composite fell 65.58 points or 1.04% to 6,308.27 and Straits Times was down by 29.45 points or 0.52% to 5,691.30.