US Inflation Data Eases Rate Hike Fears but Indian Stocks Still Lag
Indian stocks were poised for a lackluster start on Thursday as the US Federal Reserve's inflation data tempered expectations of an interest rate hike, while ongoing tensions in the Middle East kept investors cautious.
The latest consumer price index reading showed prices rose by a mere 0.1% in July, reducing the likelihood of a rate increase next month after soft jobs data was released last week.
Despite this relief, oil prices fell 1% on Thursday as forecasters lowered global demand projections for 2026 due to supply constraints from the US-Israeli war on Iran.
The Strait of Hormuz disruptions continue to keep a geopolitical risk premium in energy markets elevated, according to Hariselvan Radhakrishnan, founder and CEO of HST Wealth.
Additionally, MSCI's index rebalancing announcement will bring Laurus Labs, Lenskart, Adani Energy Solutions, and Groww into its flagship index.