Markets likely to start on a positive note following 9-month low CPI

Today, the markets are likely to see a positive start with the July retail inflation easing to a nine-month low of 4.17 per cent, Investors will also be eyeing WPI inflation data for July.  Moreover, investors expect the Reserve Bank of India to keep interest rates on hold at its review in October. The SGX Nifty suggests that the Nifty could open with an uptick of 43 points at 11,398. Among Nifty 50 companies, Grasim and Sun Pharma are set to report their numbers today.  

Asian markets were mixed on Tuesday with Japan’s benchmark Nikkei 225 index leading with gain of 1.26 per cent. On other hand, Hong Kong's Hang Seng has slipped 0.41 per cent and China’s Shanghai Composite has weakened 0.40 per cent.  
  
Back home, equity benchmark indices extended their southward journey for the second straight session on Monday amid weak cues from global markets. After opening the session on a pessimistic note, indices remained in the grip of bears throughout the day as the rupee touched an all-time low. Selling pressure was also seen in the broader indices as Nifty Mid-cap and Small-cap indices slipped 0.65 per cent and 0.98 per cent, respectively. All the sectoral indices ended in the red, barring Nifty IT, Nifty Pharma and Nifty FMCG. Nifty IT emerged as the top performer and, on other hand; Nifty PSU Banks was the worst performer followed by Nifty Media. 
  
The US stocks ended Monday’s session in the negative territory, with the S&P 500 and the Dow down for the fourth straight session owing to lingering geopolitical concerns. The Dow Jones Industrial Average was down by 125 points at 25,188; the S&P 500 slipped 11 points to close at 2,822 and the Nasdaq Composite Index declined 19 points to end at 7,820.  
  
The European stocks were under pressure on the first session of the new trading week. Markets across Europe have been selling off on fear of possible contagion from Turkey’s problem. The DAX of Germany fell 0.53 per cent; CAC 40 of France closed just below the neutral line and the UK’s FTSE 100 finished lower by 0.32 per cent.