Sensex likely to open higher; Tata Motors, CPI inflation eyed

MUMBAI: The S&P BSE Sensex is likely to extend overnight gains and open on a positive note taking cues from global peers.

The SGX Nifty was up 46.50 point at 7,688, indicating a positive start.

Analysts will be eyeing CPI inflation data for cues in the near term. India’s CPI inflation for July is likely to have risen to 7.4 per cent vs 7.31 per cent in June. Factors such as high food inflation and sub normal monsoon are likely to impact CPI.

Indian markets are witnessing a pull-back move after a sharp correction last week. According to analysts, the market is expected to remain rangebound and the upmove may see pressure near higher end of the trading range.

The S&P BSE Sensex gained 190.10 points to end at 25,519.24 in last session. The Nifty rose 57.40 points to close at 7,625.95 on the back of gains in auto and realty sectors.

Shares of Tata Motors will be in action after a strong set of quarterly results. The company beat forecasts as first-quarter net profit more than tripled on strong sales of its luxury Jaguar and Land Rover vehicles.

It reported a net profit of Rs 1726 crore in the corresponding quarter of last fiscal year. Total sales for the auto giant rose 38.6 per cent YoY to Rs 64,857 crore for the quarter ended June 30, as compared to Rs 46,785 crore reported in the year-ago period.

Meanwhile, investors in the US seem to have shrugged-off tensions between Russia and Ukraine for now.

The Dow Jones industrial average gained 0.10 percent to end at 16,569.98, the S&P 500 moved 0.28 percent higher to close at 1,936.92 and the Nasdaq Composite added 0.70 percent to end at 4,401.33.

Oil prices continued to remain subdued on the back of enough supply. Brent crude futures eased 13 cents to $104.55 a barrel and U.S. crude lost 18 cents to $97.90 per barrel.

Asian markets advanced on the back of gains on the Wall Street. Nikkei 225 was up 0.36 per cent, Seoul Composite was 0.32 per cent higher and Strait Times advanced 0.28 per cent.