1076: Marketbuzz Podcast with Reema Tendulkar: Sensex, Nifty 50 likely to open lower on domestic inflation concerns

Indian benchmark indices — Sensex and Nifty 50 — are likely to open lower on August 16 following a sharp rise in July domestic inflation.

India's GIFT Nifty on the NSE International Exchange was down 0.40 percent at 19,396 at 7:59 am.

Nifty 50 is likely to open closer to 19,350 mark. The key level to watch will be the Monday intraday low of 19,257, which coincides with the 50-day moving average of 19,258.

Retail inflation rose to a 15-month high of 7.44 percent in July, predominantly due to rising vegetable and cereals prices also dragged sentiment. The figures breached the upper end of the Reserve Bank of India's tolerance band of 2-6 percent for the first time in five months.

In the ongoing July-September quarter, the RBI now sees inflation at 6.2 percent, significantly higher than the earlier forecast of 5.2 percent.

Meanwhile, Wall Street equities fell overnight after stronger-than-expected retail sales data triggered concerns. Asian markets declined this morning on worries over China's economic recovery a day after the country's central bank unexpectedly cut rates for the second time in three months.

Some of the stocks to watch out for include ITC which saw its June quarter profit top estimates on lower costs and better demand. Infosys has signed a $1.64 billion deal with video, broadband, and communications firm Liberty Global to scale digital platforms.

Vodafone Idea has secured $240 million to meet payment obligations and has reported a wider June quarter loss on weak 4G subscriber growth.

Ashok Leyland has also received board approval to buy a 100 percent stake in OHM Global Mobility, and has said it will invest Rs 3 billion as equity into OHM to operationalise the company.

Tune in to the Marketbuzz Podcast for more news and cues ahead of today’s session