Early trade saw the BSE Sensex and Nifty rise on positive US inflation figures. JSW Steel, Tech Mahindra, and Tata Steel were among the major gainers…
Global markets rallied on positive US inflation statistics, sending equity benchmark indices higher in early trade on Wednesday. Early activity saw the 30-share BSE Sensex rise 645.08 points to 65,578.95. Meanwhile, the Nifty rose 209.8 points to 19,653.35.
JSW Steel, Tech Mahindra, Tata Steel, Infosys, Wipro, TCS, HCL Technologies, and Axis Bank gained the most on the Sensex. Laggards included Power Grid, Nestle, Mahindra, and Asian Paints.
US and Asian markets
In Asia, Seoul, Tokyo, Shanghai, and Hong Kong traded positively. Tuesday saw US markets rise significantly.
“October US inflation data changes the stock market. The October inflation rate of 3.2% was unexpected. More importantly, the 0.2% MoM core inflation increase is quite positive. These figures indicate that the Fed is done raising rates and may drop rates earlier in 2024. Geojit Financial Services Chief Investment Strategist VK Vijayakumar stated India will follow the US market’s strong comeback.
Brent rose 0.33 percent to USD 82.74 a barrel. FIIs sold Rs 1,244.44 crore in stocks on Tuesday, according to market data.
Rupee rises versus dollar
After US inflation fell below expectations, the rupee rose 32 paise to 83.01 against the US dollar in morning trade on Wednesday.
Forex traders said the rupee opened optimistic as US inflation fell to its lowest level since September 2021.
Moreover, a positive trend in domestic equities boosted investor sentiments. At the interbank foreign exchange, the rupee opened at 83.03, then touched 83.01 against the American currency, higher by 32 paise over its previous close.
Conclusion
The BSE Sensex and Nifty indices experienced significant gains in early trade on Wednesday due to favorable US inflation data. The Sensex jumped 645.08 points to 65,578.95, while the Nifty climbed 209.8 points to 19,653.35. Major gainers included JSW Steel, Tech Mahindra, Tata Steel, Infosys, Wipro, Tata Consultancy Services, HCL Technologies, and Axis Bank. Power Grid, Nestle, Mahindra & Mahindra, and Asian Paints were the laggards. Asian markets, including Seoul, Tokyo, Shanghai, and Hong Kong, were trading in positive territory. Tuesday saw US markets rise significantly.
The October US inflation data is a game changer for the stock market, with a 3.2 per cent October inflation print and a 0.2% MoM increase in core inflation. The Fed is likely to end rate hikes and advance the timeline for rate cuts in 2024. Foreign Institutional Investors offloaded equities worth Rs 1,244.44 crore on Tuesday. The rupee appreciated 32 paise to 83.01 against the US dollar in morning trade, as the American currency retreated from its elevated levels after US inflation came lower than expected.
