NIFTY 50 rose 0.3% to 18,500, its first uptick since the week‑long pause that began on Monday. The move came after the U.S. Federal Reserve released the minutes of its July 10 meeting, which confirmed the central bank's intent to keep the policy rate steady at 6.5%.
Investors are also waiting for the U.S. Consumer Price Index (CPI) data, due on Friday, which showed a 5.4% year‑over‑year increase—well above the 5.0% forecast by the majority of economists. The CPI reading is a key indicator for the Fed's next policy decision.
Meanwhile, the Indian market is gearing up for a heavy earnings season, with the top 30 NIFTY companies set to report results in the coming weeks. Analysts from ICICI Securities have noted that the sectoral mix—particularly energy and IT—could drive volatility, as their earnings are often ahead of the broader index trends.
Looking ahead, market participants expect the next NIFTY close to be more sensitive to global risk sentiment. If the U.S. CPI data confirms a continued inflationary trend, the stock market may see a sharper sell‑off, especially in the high‑beta segments. Conversely, a softer CPI reading could lift sentiment and lift the index further.
On the domestic front, the Reserve Bank of India has signaled that it will remain on a watchful stance, but no immediate policy shift is expected. Investors are advised to keep an eye on the RBI's upcoming monetary policy announcement on August 15, which could influence liquidity conditions.