After a week of losses, the Indian stock markets rebounded on Wednesday with benchmark Sensex closing 304 points higher as investors went on a buying spree of metal, auto, and pharma shares.
Steady US inflation data released on Tuesday that showed slower inflation than June was enough to raise investors’ hopes of interest rate cuts by the Federal Reserve next month.
The 30-share BSE Sensex climbed 304.32 points or 0.38 per cent to settle at 80,539.91. During the day, it jumped 448.15 points or 0.55 per cent to 80,683.74.
The 50-share NSE Nifty edged up by 131.95 points or 0.54 per cent to 24,619.35.
Also Read: Sensex down by 368 points
India’s retail inflation data slowing to an eight-year low of 1.55 per cent in July was another reason for investors to feel positive about, even though it dropped below the Reserve Bank of India’s (RBI) comfortable ‘tolerance band’.
“Indian equities experienced a broad-based optimism as CPI hit an eight-year low, boosting hopes for a revival in discretionary spending, led by autos and metals. Globally, sentiment improved on the extension of China’s tariff deadline and easing oil prices,” said Vinod Nair, Head of Research, Geojit Investments Limited, adding that despite trade uncertainties around Trump’s stance, India’s growth-inflation data remains favourable for FY26.
“Despite uncertainties around Trump’s trade stance and global risks, India’s growth-inflation dynamics remain favourable for FY26 with risk to marginal downgrade based on tariff updates. India looks forward to the Trump-Putin meet dated 15th August,” he said.
Among the Sensex firms, Bharat Electronics, Eternal, Mahindra & Mahindra, Kotak Mahindra Bank, Tata Motors and Power Grid were the gainers.
However, Adani Ports, ITC, UltraTech Cement and Titan were among the laggards.
Among Asian markets, South Korea's Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng settled sharply higher.
European markets were trading in the green.
The US markets ended significantly higher on Tuesday.
Global oil benchmark Brent crude dipped 0.36 per cent to USD 65.88 a barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth ₹3,398.80 crore on Tuesday, according to exchange data. Sensex dropped 368.49 points or 0.46 per cent to settle at 80,235.59 while Nifty went lower by 97.65 points or 0.40 per cent to 24,487.40 on Tuesday.
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