Indian stock markets, including the Sensex and Nifty, experienced a robust rebound in early trade, buoyed by softer-than-expected US inflation data that has ignited hopes for a less aggressive monetary policy from the Federal Reserve.
Sensex and Nifty50 Performance: Key Market Highlights Today
- Indian benchmark indices Sensex and Nifty rebounded significantly in early trade, with Sensex jumping 553 points and Nifty rising by 148.15 points.
- The market rally was primarily driven by softer-than-expected US inflation data for June, which came in at 3.5 per cent, below market expectations of 3.8 per cent.
- This moderation in US inflation has strengthened expectations that the Federal Reserve may adopt a less aggressive monetary policy, offering relief to global risk assets.
- Major gainers in the Sensex pack included Bajaj Finance, Axis Bank, Eternal, InterGlobe Aviation, UltraTech Cement, and State Bank of India.
- Despite the positive global cues, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 739.69 crore on Tuesday.
Market benchmark indices Sensex and Nifty rebounded in early trade on Wednesday after a sharp decline in the previous session led by bank stocks and a softer-than-expected US inflation data reinforcing expectations that the Federal Reserve may adopt a less aggressive monetary policy stance in the coming months.
The 30-share BSE Sensex jumped 553 points to 77,603.57 in early trade.
The 50-share NSE Nifty went up by 148.15 points to 24,198.40.
Winners and losers on Dalal Street
From the Sensex pack, Bajaj Finance, Axis Bank, Eternal, InterGlobe Aviation, UltraTech Cement and State Bank of India were the major winners.
Infosys, Tata Consultancy Services, Power Grid and Tech Mahindra were among the laggards.
How Global Markets Fared
In Asian markets, South Korea's Kospi jumped 7.66 per cent. Japan's Nikkei 225 index and Hong Kong's Hang Seng index traded higher, while Shanghai's SSE Composite index quoted lower.
US markets ended higher on Tuesday.
Expert View: What Investors Should Watch Next
"Global cues turned relatively supportive overnight. US equities ended higher, with the S&P 500 gaining 0.38 per cent and the Nasdaq advancing 0.90 per cent, after softer-than-expected June CPI data reinforced hopes of a more accommodative Federal Reserve policy," Rajesh Palviya, Head of Research, Axis Direct, said.
"Providing some support to global sentiment, US consumer price inflation eased to 3.5 per cent in June, below market expectations of 3.8 per cent, indicating that underlying price pressures may be moderating.
"The softer-than-expected inflation reading has reinforced expectations that the Federal Reserve could adopt a less aggressive monetary policy stance in the coming months, offering some relief to global risk assets despite the heightened geopolitical uncertainty," Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.
Inflation Data and Oil Price
Brent crude eased towards $85 per barrel after US President Donald Trump withdrew the proposed 20 per cent transit fee through the Strait of Hormuz, he added.
Brent crude, the global oil benchmark, quoted 1 per cent higher at $85.63 per barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 739.69 crore on Tuesday, according to exchange data.
