The BSE Sensex and Nifty 50 were trading steady on Tuesday after a decline on Monday, pulling back from record highs reached during the day.
As of 10:20 AM, the Sensex was up 0.20% at 76,644.79, while the Nifty gained 0.26% at 23,319.
Market participants are awaiting the US May inflation data and the Federal Reserve’s policy decision later this week. Additionally, they are closely monitoring India’s inflation data and the policy decisions of the new government.
India’s retail inflation eased to 4.83% in April, down slightly from 4.85% in March. However, consumer food price inflation surged to 8.70%, up from 8.52% last month. While India’s retail inflation remains within the RBI’s comfort range of 2-6%, it is above the ideal 4% target.
“Foreign institutional investors (FIIs) turning buyers in the last two days and covering their shorts will support the market in the near term,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. Data showed that foreign buyers were net sellers in April and May cumulatively.
“BJP keeping key portfolios signals continuity in policies, which is a positive from the market perspective,” he added.
“Investors are now awaiting the US Fed and Bank of Japan (BoJ) policy outcomes this week, along with the US and India CPI data. Thus, the market is likely to consolidate this week until clarity emerges,” said Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services.
(With ANI input)