Indian benchmark indices opened lower on Thursday as retail inflation reached a 19-month high of 4.45%. While Apollo Hospitals shares gained after reporting a 34% rise in quarterly profit, selling pressure in cement and metal stocks weighed on the broader market. Investors are closely monitoring the impact of high crude oil prices and inflation on future economic policy.
Indian equity benchmarks began the trading session on a cautious note this Thursday, with both the BSE Sensex and NSE Nifty50 tracking lower. The market sentiment was largely influenced by the latest domestic economic data, which showed India's Consumer Price Index (CPI) inflation climbing to 4.45% in July. This figure represents a 19-month high, raising concerns among investors regarding the potential impact of sustained price pressure on the economy.
While the broader market struggled, the healthcare sector offered a bright spot, led by Apollo Hospitals. The company’s shares traded higher following its recent quarterly financial results. Apollo Hospitals reported a 34.2% year-on-year increase in net profit, reaching approximately ₹581 crore for the first quarter of the 2027 fiscal year. This positive earnings report provided a buffer for the stock, allowing it to outperform the general market trend.
In contrast, the cement and metal sectors faced significant selling pressure. Major names such as UltraTech Cement and Grasim Industries were among the decliners. Much of this weakness in the cement space was linked to market activity surrounding a large block deal involving UltraTech Cement shares by Pilani Investment, which caught investor attention. Similarly, the metals index, led by companies like Hindalco Industries, remained under pressure as global commodity price fluctuations continued to influence investor sentiment.
Broader macroeconomic factors are also playing a role in current market volatility. Geopolitical tensions, particularly between the US and Iran, have kept global crude oil prices unstable. As a major importer of oil, India remains sensitive to these price movements, as higher energy costs can increase logistics and operational expenses for companies.
Looking ahead, investors are likely to monitor the Reserve Bank of India’s policy stance and how it balances growth with inflation management. While current corporate earnings, such as those from the healthcare sector, have shown resilience, the interplay between rising input costs and consumer demand will be a key factor for market participants. The ability of companies to manage margin pressure amid these high-inflation conditions remains a point of focus for the upcoming quarters.