Stock market today: Lower-than-expected inflation in the US boosted equities around the world as investors moved into riskier assets. Hopes that the US Federal Reserve would be sluggish with its rate hike plan propelled stocks higher, cooled bond yields and supported the Indian rupee. US retail inflation for July stood at 8.5 percent, up from an estimated 8.7 percent and 9.1 percent in June. At Close, the Sensex rose 515.31 points or 0.88 percent to 59,332.60, and the Nifty rose 124.20 points or 0.71 percent to 17,659.00.
Top winners and losers
Axis Bank, IndusInd Bank, HDFC, Tech M, Bajaj Finance, SBI and Wipro each added more than 2 percent, while TCS, Kotak Bank, Titan, ICICI Bank, Infosys and HCL Tech rose between 1 and 2 percent. On the other hand, Tata Consumer Products, Apollo Hospitals, ITC, NTPC, Airtel and HUL were the biggest laggards.
Sector wise, the Nifty PSB index gained the most, up 2.3 percent, followed by the Nifty IT index, up 1.8 percent.
Meanwhile, the BSE MidCap and SmallCap indices in the broader market rose between 0.5 percent and 0.8 percent.
Among the individual stocks, Eicher Motors shares hit a 52-week high at Rs 3,256 per share after the auto major reported a twofold jump in consolidated net profit to Rs 611 crore in Q1FY23.
In addition, Coal India shares also hit a 52-week high at Rs 226 per share after the miner saw a 178 percent yoy rise in consolidated net profit in Q1FY23 to Rs 8,834 crore.
dr. VK Vijayakumar, chief investment strategist at Geojit Financial Services, said: “The US inflation rate of 8.5 percent in July will give markets a boost in the near term. Many market experts believe that the spikes in inflation and the volatility of the Fed behind us, the next Fed rate hike is therefore likely to be 50 bps not 75 bps, which also increases the likelihood of a soft landing in the U.S. The texture of the market in the near term is likely to be bullish. will not hold for two reasons: first, market valuations are high and this will encourage profit postings, and second, details of US inflation data indicate that inflation is unlikely to decline steadily as wage growth and rents continue to rise. So the Fed can remain aggressive and influence market optimism.”
“The decline in the dollar index below 106 is supporting more capital flows to emerging markets and India is the outperformer in emerging markets,” he added.
Global clues
Asian stocks followed Wall Street higher on Thursday after a softer-than-expected inflation report in the US encouraged the Federal Reserve to introduce less aggressive rate hikes, while the dollar remained bruised after its biggest plunge in five months.
Wall Street rose on Wednesday, pushing the Nasdaq more than 20 percent above its June low, after US inflation slowed more than expected in July and sparked hopes that the Federal Reserve will become less aggressive on rate hikes.
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