Dalal Street Eyes Global Inflation Data Amid FII Inflows

Global markets remain fixated on critical inflation reports this week, with India and the US preparing to release Consumer Price Index (CPI) data. The Reserve Bank of India (RBI) recently maintained its repo rate at 5.25% on August 5, 2026, citing persistent inflation concerns despite a slightly lowered fiscal year outlook. Meanwhile, US markets show sensitivity to potential Federal Reserve policy shifts, as the dollar currently trades near a two-month low awaiting further economic guidance.

Energy markets continue to grapple with uncertainty surrounding the Strait of Hormuz and ongoing diplomatic negotiations involving the US and Iran. Crude prices, including Brent and WTI, have fluctuated significantly as a definitive agreement to reopen key shipping lanes remains elusive. These geopolitical tensions, combined with localized supply-side shocks, sustain volatility in global commodity pricing and weigh on broader investor risk appetite.

India’s stock market is demonstrating renewed vigor, buoyed by robust Q1 fiscal earnings and strong domestic performance from companies like Maruti Suzuki India. Foreign portfolio investors injected ₹12,921 crore into Indian equities during early August 2026, signaling sustained confidence despite earlier 2026 volatility. Market participants are now monitoring retail sales and PPI data, which will likely determine the near-term trajectory for both US equities and domestic sentiment.