Retail inflation eases to 6-year low of 2.1% in June
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Business Standard
an hour ago
- Business Standard
Muted start likely amid mixed global cues
GIFT Nifty: GIFT Nifty July 2025 futures were trading 9.50 points lower in early trade, suggesting a mildly negative opening for the Nifty 50. Economy: Indias retail inflation, measured by the Consumer Price Index (CPI), cooled to a multi-year low of 2.10% in June 2025, thanks to a sharp dip in food prices. The data, released by the Ministry of Statistics and Programme Implementation (MoSPI) on Monday, 14 July 2025, marks the lowest year-on-year inflation rate since January 2019. For comparison, CPI inflation stood at 2.82% in May 2025 and 5.08% in June 2024. Institutional Flows: Foreign portfolio investors (FPIs) sold shares worth Rs 1,614.32 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,787.68 crore in the Indian equity market on 14 July 2025, provisional data showed. According to NSDL data, FPIs have sold shares worth Rs 5474.96 crore in the secondary market during July 2025. This follows their purchase of shares worth Rs 8466.77 crore in June 2024. Global Markets: Most Asian indices edged higher on Tuesday after China's GDP grew 5.2% in the second quarter, according to data from the National Bureau of Statistics. While the growth beat market expectations, it still marked a slowdown from the 5.4% seen in the first quarter. Junes economic indicators in China offered a mixed bag. Retail sales growth eased to 4.8% year-on-year, down from 6.4% in May. On the brighter side, industrial output beat forecasts, rising 6.8% year-on-year, while fixed asset investment climbed 2.8% in the first half of 2025. The urban unemployment rate held steady at 5% in June, unchanged from May but lower than the two-year high of 5.4% in February. Over in the US, the S&P 500 inched up on Monday after President Donald Trump signaled willingness to negotiate on trade, including with the European Union. The gesture helped calm market jitters over a potential global trade war. By the closing bell on the NYSE, the Dow Jones Industrial Average was up 0.20%, the S&P 500 gained 0.14%, and the NASDAQ Composite added 0.27%. Among standout movers, shares of Palantir Technologies surged 4.96%, or $7.05, to hit an all-time high of $149.15. Boeing Co also soared to a 52-week high, rising 1.62% or $3.67 to $230.51. Domestic Market: Equity benchmarks ended lower for the fourth straight session on Monday, slipping despite a softer WPI inflation print. The Nifty closed below the 25,100 mark as selling in IT stocks offset gains in healthcare. Meanwhile, mid- and small-cap stocks bucked the trend, showing positive momentum. The S&P BSE Sensex declined 247.01 points or 0.30% to 82,253.46. The Nifty 50 index lost 67.55 points or 0.27% to 25,082.30. In four consecutive trading sessions, the Sensex and the Nifty have dropped 1.74% and 1.72%, respectively.
Time of India
an hour ago
- Time of India
Inflation outlook: CPI might dip to record-low in July; FY26 average may slip below RBI forecast
This image is AI-generated and representational. Retail inflation in India is set to touch a record low in July 2025, with average inflation for the financial year 2025–26 likely to remain well below the Reserve Bank of India 's (RBI) projection, according to a new report by the State Bank of India (SBI). "We believe that the upcoming July 2025 CPI inflation data is set to breach the lowest ever historical print," the report stated. SBI estimates average Consumer Price Index (CPI) inflation for FY26 to fall between 3.0% and 3.2%, significantly under the RBI's 3.7% forecast and far below the 4.6% average recorded in FY25. This sharp moderation follows the RBI's recent 50 basis points rate cut during its June policy review. With inflation expectations now appearing benign, the report noted that the central bank is shifting its focus to boosting capital formation to support more durable and sustained growth. As highlighted by the monetary policy committee (MPC) in its latest resolution, monetary decisions will continue to be data-driven, aiming to strike a balance between inflation and growth. For the future, SBI views the current inflation trend as firmly benign, even though risks from external trade disruptions and unpredictable price swings persist. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like An engineer reveals: One simple trick to get internet without a subscription Techno Mag Learn More Undo The report also hinted at the possibility of another 25 basis points rate cut "sooner than later" to further fuel growth, stating, "The plot seems to be spiced with a further 25 bps rate cut (sooner than later) to give an adrenaline boost to the economic juggernaut as global developments necessitate us to build today for future". India's CPI inflation dropped to a 77-month low of 2.10% in June 2025, down from 2.82% in May and 5.08% a year earlier. The fall was mainly due to a sharp decline in food inflation, which also hit a 77-month low of -0.20%, driven by falling prices of vegetables, pulses, and spices. However, the report flagged a growing concern over imported inflation, which rose for the 13th straight month in June. Surging gold and silver prices were key contributors. The share of imported inflation in the overall CPI basket rose sharply to 71% in June, from 50% in May. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
The Hindu
an hour ago
- The Hindu
Markets rebound in early trade after four days of decline
Stock market benchmark indices Sensex and Nifty rebounded in early trade on Tuesday (July 15, 2025) after four days of decline amid retail inflation declining to over six-year low of 2.1% in June, nearing the RBI's comfort zone. A positive trend at Wall Street in overnight trade also led to domestic equity markets recovery during the initial trade. The 30-share BSE Sensex climbed 203.95 points to 82,457.41 in early trade. The 50-share NSE Nifty went up by 68.85 points to 25,151.15. From the Sensex firms, Sun Pharma, Bharti Airtel, Mahindra & Mahindra, Bharat Electronics, Tata Motors and Infosys were among the biggest gainers. However, HCL Tech declined nearly 3 per cent after the IT services firm reported a 9.7% drop in consolidated net profit for the June quarter, hurt by higher expenses and one-time impact of a client bankruptcy, but raised the lower end of revenue growth outlook for the full fiscal on booking expectations in coming quarters. Eternal, UltraTech Cement, Tata Steel and ICICI Bank were also the laggards. Retail inflation declined to over six-year low of 2.1% in June, nearing the RBI's comfort zone, on account of subdued prices of food items, including vegetables, driven by widespread monsoon. The Consumer Price Index-based inflation was 2.82% in May and 5.08% in June 2024. Inflation is on a decline since November 2024. Year-on-year inflation rate based on CPI for the month of June 2025 over June 2024 is 2.1%, the National Statistics Office (NSO) said in a statement on Monday. "Market is in a state of drift with no clear indications of a sharp change of course. FIIs who have been net buyers in April, May and June have turned net sellers in July as per the latest data. This has put pressure on large caps. A significant macro trend is the decline of CPI inflation in June to 2.10 per cent. It appears that inflation will undershoot RBI's projection of 3.7 per cent CPI inflation for FY26. This has raised rate cut hopes," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said. In Asian markets, Japan's Nikkei 225 index and Hong Kong's Hang Seng were trading in the positive territory while South Korea's Kospi and Shanghai's SSE Composite index quoted lower. The U.S. markets ended in the positive territory on Monday. Global oil benchmark Brent crude dipped 0.39% to USD 68.94 a barrel. Foreign Institutional Investors (FIIs) offloaded equities worth ₹1,614.32 crore on Monday, while Domestic Institutional Investors (DIIs) bought stocks worth ₹1,787.68 crore, according to exchange data. On Monday, the BSE Sensex dropped by 247.01 points or 0.30% to settle at 82,253.46. The Nifty settled lower by 67.55 points or 0.27% to 25,082.30.
