Stock Market India: Sharp gain for Sensex, Nifty on peak of US inflation
Equity benchmarks rose sharply on Thursday, a day after US inflation likely peaked, lifting risky assets globally when the Federal Reserve slowed rate hike bets.
The 30-share Sensex index ended 515.31 points or 0.88 per cent higher at 59,332.60 and the NSE Nifty gained 0.71 per cent at 17,659.
“Investors cheered US inflation data for July, which came in below estimates, and expressed hope that the Federal Reserve may not be aggressive in raising interest rates at its next meeting. Hence, optimism spread to Asian markets, including India. Gaya, where banking, IT and realty stocks declined, said Shrikant Chauhan, head of equity research, retail at investor Kotak Securities.
Axis Bank was the top gainer in the Sensex pack, rising 2.75 per cent, followed by Bajaj Finance, HDFC, Tech Mahindra, Wipro, SBI, TCS and IndusInd Bank.
On the other hand, ITC, NTPC, HUL, Bharti Airtel, Maruti and Nestle India were among the laggards, falling 1.56 per cent.
Nifty started the day sharply at 17,711.65 points and reached an intra-day high of 17,719.30 points. There was strong support for buying in IT, banking and financial stocks.
Axis Bank rose 2.75 per cent to Rs 759.20. HDFC rose 2.14 per cent to Rs 2449.10. State Bank of India rose 1.95 per cent to Rs 524.55. Kotak Bank rose 1.46 per cent to Rs 1854.15. HDFC Bank rose 1.42 per cent to Rs 1486.75.
Tech Mahindra rose 2.12 per cent to Rs 1077.15. Wipro gained 1.93 per cent to Rs 438.40. The country’s largest IT company Tata Consultancy Services rose 1.98 per cent to Rs 3422.45.
Index heavyweight Reliance Industries Ltd closed 0.32 per cent higher at Rs 2590.20.
Of the 30 stocks in the benchmark Sensex, only 11 closed in the red. ITC slipped 1.56 per cent to Rs 306.30. NTPC closed at Rs 153.55, down 1.38 per cent. Hindustan Unilever rose 1.04 per cent to Rs 2612.35. Bharti Airtel fell 0.76 per cent to Rs 709.55.
Maruti Suzuki, Nestle India, Power Grid Corporation, Asian Paints and Mahindra & Mahindra were among the top losers on the Sensex.
Foreign institutional investors (FIIs) were net buyers in the Indian capital market as they bought shares worth Rs 1,061.88 crore on Wednesday, latest exchange data showed.
Elsewhere in Asia, shares in Hong Kong, Shanghai and Seoul ended with significant gains, while Tokyo closed in the red. Equities in Europe were trading on a negative note in mid-session deals.
Traders said the rally in the domestic markets was supported by a firming trend in global equities, especially the US gauge and later in Asian indices.
Michael Hewson, chief market analyst at CMC Markets, said the rise in inflation could mean less aggressive interest rate hikes at the US Federal Reserve meeting in September.
Lower-than-expected US consumer prices lifted Wall Street, with momentum in Asian exchanges and Europe.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.4 per cent to its highest in six weeks, led by Hong Kong jumping 1.8 per cent, South Korean shares up 1.2 per cent and China up 1.5 per cent in the blue. Happened with the edge. chips
The STOXX index of 600 major European companies was up 0.3 per cent. The MSCI All Country Index was up 0.11 per cent but remains down about 14 per cent for the year, wiping out most of 2021’s 17 per cent advance.
The World Federation of Exchanges said $18 trillion has been wiped out of global markets in the first half of 2022, a 15 percent drop in stock market capitalization, as the global economy recovers from COVID-19 and the fallout from the war in Ukraine. tries. ,
S&P 500 futures rose 0.2 per cent and Nasdaq futures 0.4 per cent, indicating more gains in store on Wall Street.
Overnight on Wall Street, the S&P 500 rose more than 2 per cent, while the Nasdaq Composite rose 2.9 per cent. The Nasdaq is now up more than 20 percent from its June low.
Meanwhile, international oil benchmark Brent crude rose nearly 1 per cent to $98.30 a barrel.