FIRST TRADE: Sensex gains over 300 pts; Nifty at 25,027; Tata Steel up 3%

FIRST TRADE: Indian equities tracking positive global cues after US CPI inflation came in lower than expected started Thursday's session on a positive note. At the open, Nifty is up 0.44 per cent or 108.45 points at 25,026.9, while the Sensex added 0.38 per cent or 311.83 points at 81,834.99.

All the sectors traded in the green, with the metal and PSU Banking pack outshining all others.

Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, "Latest US inflation numbers are mildly positive for markets. August CPI inflation coming at 0.2 per cent has brought down the 12-month inflation to 2.5 per cent from 2.9 per cen in July. This paves the way for a rate cut by the Fed in September."

But since core inflation continues to remain high at 3.2 per cent the Fed is likely to be cautious and refrain from a 50bp rate cut, finally settling for a 25bps rate cut. CPI inflation in India also is expected to be low at around 3.5 per cent in August. This can facilitate a rate cut by the MPC in 2024 itself. In brief, the benign inflation conditions and prospects for rate cuts are positives for stock markets, added Vijaykumar.

Stocks in focus 

Electric vehicle stocks will gather focus as the Centre has approved the PM E-Drive scheme replacing the earlier FAME scheme. Stocks from the space traded mixed amid the development.

Nomura has initiated its coverage on Dixon Technologies with a buy rating and the target pegged at Rs 15,567, signifying 23 per cent potential upside.

Asian markets

Most Asian stocks gained traction as tech stocks tracking overnight gains in Nvidia got a boost. Japan's Nikkei soared as a soft producer inflation print undermined hawkish bets from the Bank of Japan. ​