Stock market gauge Sensex and Nifty indices recovered in early trade on Tuesday after four consecutive days of decline following retail inflation falling to more than six-year low of 2.1 per cent in June, close to the RBI's comfort level. A positive trend in Wall Street in overnight trade also resulted in domestic equity markets regaining ground during initial trade.
The 30-share BSE Sensex rose 203.95 points to 82,457.41 during initial trade. The 50-share NSE Nifty gained 68.85 points to 25,151.15.
Among the Sensex companies, Sun Pharma, Bharti Airtel, Mahindra & Mahindra, Bharat Electronics, Tata Motors and Infosys were among the top gainers.
But HCL Tech fell almost 3 per cent after the IT services company saw a 9.7 per cent fall in consolidated net profit for the June quarter due to increased cost and one-off effect of a client bankruptcy, but boosted the lower end of revenue growth guidance for the entire fiscal on booking expectations in upcoming quarters. Eternal, UltraTech Cement, Tata Steel and ICICI Bank were also the laggards. Retail inflation fell to more than six-year low of 2.1 per cent in June, due to softening of food prices, led by widespread rains.
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The Consumer Price Index-based inflation was 2.82 per cent in May and 5.08 per cent in June 2024.
Inflation is on the decline since November 2024. Month-on-month inflation rate according to CPI for June 2025 compared to June 2024 stands at 2.1 per cent, the National Statistics Office (NSO) announced in a statement on Monday.
"Market is drifting with no decisive signs of sudden change of direction. FIIs who were net buyers in April, May and June turned net sellers in July according to the latest figures. This put pressure on large caps. A key macro trend is the fall in CPI inflation in June to 2.10 per cent. Inflation seems to undershoot RBI's estimate of 3.7 per cent CPI inflation for FY26. This fuelled rate cut hopes," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
In the Asian markets, Japan's Nikkei 225 index and Hong Kong's Hang Seng were higher in the positive territory whereas South Korea's Kospi and Shanghai's SSE Composite index quoted lower.
The US markets closed in the positive territory on Monday. Global oil benchmark Brent crude fell 0.39 per cent at USD 68.94 a barrel.
Foreign Institutional Investors (FIIs) sold equities amounting to ₹1,614.32 crore on Monday, while Domestic Institutional Investors (DIIs) purchased stocks amounting to ₹1,787.68 crore, as per exchange data.
On Monday, BSE Sensex fell by 247.01 points or 0.30 per cent to close at 82,253.46. The Nifty closed lower by 67.55 points or 0.27 per cent to 25,082.30.
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