Indian benchmark indices Sensex and Nifty50 traded higher on Wednesday, supported by gains in financial and IT stocks, after both U.S. and domestic inflation data for April came in lower than expected.
The BSE Sensex jumped 518 points, or 0.64%, to 81,666, while the Nifty50 gained 184 points, or 0.75%, to trade at 24,762 around 10:20 am.
U.S. consumer inflation rose 0.2% in April, below the 0.3% increase forecast by economists in a Reuters poll, easing concerns over further interest rate hikes by the Federal Reserve.
Meanwhile, India's retail inflation eased to 3.16% in April, the lowest in six years and below the Reuters poll estimate of 3.27%, boosting hopes of a potential rate cut by the Reserve Bank of India.
From the Sensex pack, Tata Steel, Bharti Airtel, L&T, Infosys, Tech Mahindra, and Bajaj Finserv were among the top gainers, rising 1–4%. On the other hand, Tata Motors, Asian Paints, Nestle India, IndusInd Bank, and HUL opened with losses.
Tata Steel shares surged 4% after the company’s substantial capital expenditure plan of Rs 15,000 crore for FY26, according to a report.
Meanwhile, Garden Reach Shipbuilders & Engineers (GRSE) shares skyrocketed 14.4% in early trade after the company reported a sharp 118% YoY jump in its Q4FY25 net profit to Rs 224 crore.
On the sectoral front, all indices opened higher, with Nifty Financial Services, IT, Metal, PSU Bank, Realty, and Oil & Gas rising between 0.5% and 2%.
The market capitalisation of all listed companies on BSE surged by Rs 3.1 lakh crore to Rs 434.2 lakh crore.
Experts View
"Global markets are in a state of flux, moving up and down in response to continuously changing policy scenarios. Trump’s reciprocal tariff policy, which caused tremors in markets is now done and dusted with a deal emerging between US and China. It appears that the trend of weakening dollar is over. The US 10-year yield has spiked to 4.47%, and this might impact the FII fund flows to India, which has been keeping the Indian market resilient. There is also a risk of hot money again moving to cheaper Chinese stocks in the new environment of improving US-China relationship," said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
"However, a strong tailwind for the Indian market is the sharp dip in April CPI inflation to 3.16%. This leaves enough room for the MPC to cut rates thrice more in this cutting cycle. This is positive for the market in general and rate sensitivities in particular," Vijayakumar added.
Hardik Matalia, Derivative Analyst at Choice Broking, said, "After a positive opening, Nifty can find support at 24,500, followed by 24,400 and 24,300. On the higher side, 24,700 can be an immediate resistance, followed by 24,800 and 24,850."
Global Market
Stocks edged up in Asia on Wednesday while the dollar wobbled as relatively benign U.S. inflation data fed into prospects of rate cuts by the Federal Reserve later this year, even as investors were still gauging if the worst of the trade conflicts was over. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.9% in early trade after U.S. stocks climbed back into positive territory for the year, erasing losses triggered by Trump's chaotic rollout of sweeping tariffs. Japan's Nikkei gauge slid 0.7%, trimming a 1.4% advance on Wednesday. Equity futures pointed to retreats in both European and U.S. markets.
FII/DII Tracker
The Foreign institutional investors (FIIs) sold equities worth Rs 476 crore on May 13, while Domestic institutional investors (DIIs) extended their buying on the third day as they bought equities of Rs 4,273 crore on the same day.
Crude Oil
Oil prices held near two-week highs in early trading on Wednesday, supported by an agreement between the U.S. and China to temporarily lower their reciprocal tariffs and a falling U.S. dollar.
Brent crude futures inched down 10 cents, or 0.15%, by 0008 GMT to $66.53 a barrel. U.S. West Texas Intermediate (WTI) crude slipped 7 cents, or 0.11%, to $63.60. Both benchmarks climbed more than 2.5% in the previous session.
Rupee vs Dollar
The Indian rupee rose 31 paise to 85.05 against the US dollar in early trade. The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, declined 0.12% to 100.88 level.
(With inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
The BSE Sensex jumped 518 points, or 0.64%, to 81,666, while the Nifty50 gained 184 points, or 0.75%, to trade at 24,762 around 10:20 am.
U.S. consumer inflation rose 0.2% in April, below the 0.3% increase forecast by economists in a Reuters poll, easing concerns over further interest rate hikes by the Federal Reserve.
Meanwhile, India's retail inflation eased to 3.16% in April, the lowest in six years and below the Reuters poll estimate of 3.27%, boosting hopes of a potential rate cut by the Reserve Bank of India.
From the Sensex pack, Tata Steel, Bharti Airtel, L&T, Infosys, Tech Mahindra, and Bajaj Finserv were among the top gainers, rising 1–4%. On the other hand, Tata Motors, Asian Paints, Nestle India, IndusInd Bank, and HUL opened with losses.
Tata Steel shares surged 4% after the company’s substantial capital expenditure plan of Rs 15,000 crore for FY26, according to a report.
Meanwhile, Garden Reach Shipbuilders & Engineers (GRSE) shares skyrocketed 14.4% in early trade after the company reported a sharp 118% YoY jump in its Q4FY25 net profit to Rs 224 crore.
On the sectoral front, all indices opened higher, with Nifty Financial Services, IT, Metal, PSU Bank, Realty, and Oil & Gas rising between 0.5% and 2%.
The market capitalisation of all listed companies on BSE surged by Rs 3.1 lakh crore to Rs 434.2 lakh crore.
Experts View
"Global markets are in a state of flux, moving up and down in response to continuously changing policy scenarios. Trump’s reciprocal tariff policy, which caused tremors in markets is now done and dusted with a deal emerging between US and China. It appears that the trend of weakening dollar is over. The US 10-year yield has spiked to 4.47%, and this might impact the FII fund flows to India, which has been keeping the Indian market resilient. There is also a risk of hot money again moving to cheaper Chinese stocks in the new environment of improving US-China relationship," said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
"However, a strong tailwind for the Indian market is the sharp dip in April CPI inflation to 3.16%. This leaves enough room for the MPC to cut rates thrice more in this cutting cycle. This is positive for the market in general and rate sensitivities in particular," Vijayakumar added.
Hardik Matalia, Derivative Analyst at Choice Broking, said, "After a positive opening, Nifty can find support at 24,500, followed by 24,400 and 24,300. On the higher side, 24,700 can be an immediate resistance, followed by 24,800 and 24,850."
Global Market
Stocks edged up in Asia on Wednesday while the dollar wobbled as relatively benign U.S. inflation data fed into prospects of rate cuts by the Federal Reserve later this year, even as investors were still gauging if the worst of the trade conflicts was over. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.9% in early trade after U.S. stocks climbed back into positive territory for the year, erasing losses triggered by Trump's chaotic rollout of sweeping tariffs. Japan's Nikkei gauge slid 0.7%, trimming a 1.4% advance on Wednesday. Equity futures pointed to retreats in both European and U.S. markets.
FII/DII Tracker
The Foreign institutional investors (FIIs) sold equities worth Rs 476 crore on May 13, while Domestic institutional investors (DIIs) extended their buying on the third day as they bought equities of Rs 4,273 crore on the same day.
Crude Oil
Oil prices held near two-week highs in early trading on Wednesday, supported by an agreement between the U.S. and China to temporarily lower their reciprocal tariffs and a falling U.S. dollar.
Brent crude futures inched down 10 cents, or 0.15%, by 0008 GMT to $66.53 a barrel. U.S. West Texas Intermediate (WTI) crude slipped 7 cents, or 0.11%, to $63.60. Both benchmarks climbed more than 2.5% in the previous session.
Rupee vs Dollar
The Indian rupee rose 31 paise to 85.05 against the US dollar in early trade. The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, declined 0.12% to 100.88 level.
(With inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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