After falling to profit-booking in the previous session, the benchmarks Nifty 50 and Sensex might open with mild gains in trade on Wednesday, May 14, as investors digest cooling consumer price inflation numbers, along with favourable global cues.
At 7.50 am, the GIFT Nifty index was nearly 100 points or 0.4 percent higher, implying a start in the green for the frontline indices.
India's retail inflation for April moderated to multi-year lows to 3.16 percent, as a result of easing food inflation, led by contracting vegetable inflation. This marks the lowest CPI print since July 2019.
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Overnight, the dollar fell and major U.S. stock indices rose on news that U.S. consumer inflation picked up less than expected in April, when President Donald Trump unveiled a raft of tariffs that has wreaked havoc on global markets.
The S&P 500 and the Nasdaq advanced on the softer-than-expected inflation numbers and easing of U.S.-China trade tensions. The S&P 500 rose 0.72 percent and the Nasdaq Composite rose 1.61 percent.
The Dow Jones Industrial Average fell 0.64 percent, under pressure from UnitedHealth's slide after the company suspended its annual forecast and its CEO stepped down.
Asian stocks traded in narrow ranges early Wednesday as investors waited for direction after US benchmarks wiped out their 2025 losses on signs trade tensions are easing and after US inflation was softer than forecast.
After the indices saw a rip-roaring rally on Monday, May 12, the frontlines fell to profit-taking in the previous session. At close, the Sensex was down 1,281.68 points or 1.55 percent at 81,148.22, and the Nifty was down 346.35 points or 1.39 percent at 24,578.35
As long as Nifty hovers above 24,400, the underlying structure remains intact. Pullbacks continue to appear rewarding, with buying interest creeping in on every meaningful dip.
"The immediate ceiling lies near 24,800–25,000, and a strong close above this range could ignite a fresh round of short covering, potentially taking the index to 25,200–25,300. On the flip side, a slip beneath 24,500 might open the gates for minor profit-taking toward the 24,370 mark — a zone that could yet again offer an entry point for the bulls," said Dhupesh Dhameja, Derivatives Research analyst, SAMCO Securities.
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