Trump-Zelensky Meet, CPI Inflation And Other Market Cues Likely To Impact D-Street Action Today

The domestic equity markets, in the previous session on August 12, 2025, saw a volatile session as investors reacted to the US and China agreeing to extend their trade truce by 90 days.

The Sensex fell 368 points, or 0.46 per cent to close at 80,235, while the Nifty 50 slipped 98 points, or 0.40 per cent to 24,487. Midcap and smallcap indices also ended mostly lower or flat.

Banks, financial services, and FMCG stocks led the declines, while pharma, auto, IT, and energy sectors provided some support.

Key Market Cues Today

In today’s trade, August 13, 2025, here are the key market cues that are liekly to decide the action on the Dalal Street.

India-US Trade Talks

Prime Minister Narendra Modi is likely to visit the US next month for the UN General Assembly in New York, scheduled for the last week of September. Plans are reportedly being made for a possible meeting with US President Donald Trump to resolve ongoing trade tensions.

Meanwhile, US Treasury Secretary Scott Bessent said in an interview on August 12 that India has been “a bit recalcitrant” in trade talks. The US and India are negotiating ahead of an August 27 deadline, after which Trump may impose the remaining 25 per cent proposed tariffs.

Earlier, a senior government official told a parliamentary panel that India will not compromise on its core positions in ongoing trade negotiations with the US. The official emphasised that all issues will be addressed through constructive dialogue.

Market participants will be watching closely for any signs of progress ahead of the August 27 deadline.

Trump-Zelensky Meeting

The White House has confirmed that Trump will hold virtual talks with Ukrainian President Volodymyr Zelensky later today, ahead of a one-on-one in-person meeting with Russian President Vladimir Putin on August 15.

The meeting with Putin is being positioned by the White House as a "listening exercise" and "fact-finding" mission.

The talks are hinting at a possible de-escalation of the Ukraine conflict.

India's CPI Inflation Plunges To 8-Year Low In July

India’s consumer price index (CPI)-based retail inflation eased by 55 basis points to 1.55 per cent in July 2025, the lowest level since June 2017. Food inflation fell deeper into negative territory at -1.76 per cent. Lower prices of pulses, vegetables, cereals, eggs, and sugar, along with reduced transport and education costs were the reasons behind easing inflation. A favourable base effect also contributed to the decline.

Market participants are likely to react to these fresh numbers as they hold potential to impact the Reserve Bank of India’s (RBI) interest rate decision in its October policy review.

US Core CPI Inflation Rises In July

US core inflation rose 0.3 per cent in July, led by higher services costs, according to data from the Bureau of Labor Statistics. On a yearly basis, core CPI rose to 3.1 per cent. Core CPI strips of the often volatile food and energy categories from its calculations and provides a better sense of underlying inflation trends.

After the fresh US inflation data, market participants are now largely expecting the Federal Reserve to cut interest rates next month.

Lower rates in the US could push foreign institutional buying in emerging markets like India.

Q1 Results Today

The April-June earnings season is nearing its end, and as many as 640 companies listed on the Bombay Stock Exchange (BSE) are set to report their quarterly results today.

Market participants will also react to earnings released post-market hours on August 12.