Indian markets see to be in for a modestly volatile and cautious opening on tomorrow morning when they open up for trading. The cues from the flat red GIFT Nifty, losing graph in U.S. markets, and volatility in Indian ADRs suggest this, to conclude the least. Investor minds will, however, eagerly await the announcement of the coming inflation data releases in both the U.S. and India, scheduled for release tomorrow, which can strongly impact market sentiment and direction.
GIFT Nifty flat red
The GIFT Nifty shows a small loss, down 0.14% on late Monday, hinting that Indian equity benchmarks could open volatile with investor sentiment being kept buoyant by strong blue-chip performances. U.S. equities trade lower as of now, after the tariff concern despite hopes from the Federal Reserve to deliver its first interest rate cut of the year in September. The Dow Jones trades in loss of 0.37%, Nasdaq flat, and S&P 500 flat red.
Indian ADRs also reflected mixed but stable trends in recent times, with players such as Dr. Reddy’s, Infosys, and HDFC Bank holding relatively stable prices, indicating foreign institutional investors remain supportive of Indian equities listed overseas.
Upcoming inflation data
The coming inflation reports have significant import. The U.S. Consumer Price Index (CPI) in July 2025 is forecasted to reflect a year-on-year inflation rate increase to 2.8% from June’s 2.7%, supported by price hikes in categories such as household furnishings, recreational items, used vehicles, and airline travel. Core inflation after excluding food and energy is forecasted to rise to 3.0%. These numbers will yield invaluable hints regarding inflationary pressures and guide the monetary policy actions of the Federal Reserve, particularly on rate reductions.
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From the Indian side, CPI for July is also in the offing with hopes of inflation remaining close to recent low points in the range of 2.1%. Food prices had eased last month and overall inflationary pressures were weak, but investors will closely observe any changes, particularly in the fuel, housing, and transport segments, since these influence consumer expenditure and economic growth expectations.
Volatility will arise due to inflation uncertainty, but overall a mix of international sentiment and domestic fundamentals is likely to shape market behaviour. Overall, Indian trading tomorrow is likely to tread cautiously, underpinned by GIFT Nifty and U.S. market’s flat reds, also watchful of the dual inflation release data from the U.S. and India, which are vital in influencing near-term investor sentiment and policy views.
