Indian equity markets opened cautiously ahead of key US inflation figures, with a notable MSCI rebalancing expected to inject substantial passive flows despite early declines in benchmark indices.
Indian shares opened cautiously on Thursday as investors kept one eye on key US inflation figures that could shape the next move in global markets. The BSE Sensex started at 78,111, up from its previous close of 77,966, while the Nifty 50 opened at 24,431 against 24,435 the day before. By about 10:20am, however, both benchmarks had slipped into the red, with the Sensex down 188 points at 77,777 and the Nifty trading near 24,336.
The weakness was not uniform across the market. Cement stocks were the day’s weakest pocket in early trade, with the Nifty Cement index falling more than 1%, while the Nifty Pharma index also moved lower. The broader tone suggested investors were reluctant to take large positions before fresh US data, which could influence expectations for interest rates and risk appetite worldwide.
A major domestic focus was the latest MSCI Standard Index review, which is expected to trigger meaningful passive flows into Indian equities. Laurus Labs, Lenskart, Adani Energy Solutions and Groww were added to the benchmark, while Balkrishna Industries, SBI Cards and Astral were dropped. According to market estimates cited by Moneycontrol, India’s weight in the index will edge up to 11.9% from 11.8%, with the number of constituents rising to 166 from 165.
Analysts estimate the reshuffle could bring in about $1.52 billion in inflows, with Laurus Labs alone drawing nearly $598 million. The three removed names could face combined outflows of about $450 million. For now, though, the market’s near-term direction appears likely to remain tied to global cues, especially the US inflation reading that investors have been waiting for.
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