India’s stock benchmarks inch lower ahead of inflation data
Indian equity benchmarks inched lower on Tuesday as a drop in financials weighed ahead of key U.S. and domestic inflation readings. The Nifty 50 fell 0.4% to 24,487.4 points and the BSE Sensex shed 0.46% to 80,235.59. Investors await U.S. CPI data due later in the day which will guide the Federal Reserve’s rate-cut path. Lower U.S. rates typically boost the appeal of emerging market equities, including India, as yields on U.S. Treasuries fall. Eight of the 16 major sectors logged gains. The broader small-caps were flat, while mid-caps slipped 0.3%. Financials, which gained 0.9% in the previous session, reversed course and fell 1% on Tuesday. IT rose 0.4%, on the back of a U.S.-China tariff truce extension that averts triple-digit duties that is expected to shield U.S. growth, curb inflation risks, and support corporate discretionary spending, including on technology. Pharma advanced 0.7%, buoyed by strong results from Abbott India and Alkem Laboratories. The sector, like IT, counts the U.S. as a key market.