Easing US and India inflation, MSCI reshuffle, and strong tech performance on Wall Street drive optimism despite Tuesday’s sharp correction.
May 14, 2025: The Indian stock market is poised for a gap-up opening on Wednesday, supported by cooling inflation data and improving global cues. Gift Nifty was trading at around 24,735, a premium of nearly 95 points from the Nifty futures’ previous close.
Asian and US Market Trends
Asian markets were mostly higher, reflecting optimism from Wall Street’s mixed but largely positive session. Japan’s Nikkei 225 and Topix were in the red, but South Korea’s Kospi gained 0.5%, and Hang Seng futures indicated a stronger start. On Wall Street, tech stocks rallied after softer-than-expected US inflation data. The Nasdaq surged 1.61%, while the S&P 500 rose 0.72%. The Dow slipped 0.64%.
Indian Market Recap
Tuesday saw a sharp correction in Indian equities after Monday’s euphoric rally. The Sensex fell 1,281.68 points to close at 81,148.22, while the Nifty dropped 346.35 points to 24,578.35. Analysts attribute this pullback to profit booking and cautious sentiment, though strong support is seen in the 24,400–24,600 zone.
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Inflation: US and India
US CPI inflation rose 0.2% in April, the lowest annual increase in four years at 2.3%, below expectations. In India, retail inflation dropped to a six-year low at 3.16% YoY in April, further boosting investor sentiment.
MSCI Index Rejig
MSCI has announced changes to its India indices. Coromandel International and FSN E-commerce Ventures (Nykaa) will join the MSCI India Index, while 12 stocks are added and 21 removed from the MSCI India Domestic Smallcap Index, effective after May 30, 2025.
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Commodities
Gold prices dipped slightly amid easing geopolitical and trade tensions. Spot gold fell 0.1% to $3,246.21 an ounce. Crude oil hovered near two-week highs as Brent fell to $66.34 and WTI to $63.40 per barrel.
Outlook
Despite Tuesday’s correction, analysts remain optimistic due to improving inflation trends and geopolitical stability. Focus will remain on high-quality stocks and sectoral resilience.
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