Sensex jumps over 550 points, Nifty rebounds in early trade
Benchmark indices Sensex and Nifty rebounded sharply in early trade on Wednesday, supported by gains in banking stocks and softer-than-expected US inflation data. Positive global cues boosted investor sentiment despite foreign fund outflows and continuing geopolitical uncertainty
Mumbai: Market benchmark indices Sensex and Nifty rebounded in early trade on Wednesday after a sharp decline in the previous session, led by bank stocks and supported by softer-than-expected US inflation data, which reinforced expectations that the Federal Reserve may adopt a less aggressive monetary policy stance in the coming months.
The 30-share BSE Sensex jumped 553 points to 77,603.57 in early trade. The 50-share NSE Nifty rose 148.15 points to 24,198.40.
From the Sensex pack, Bajaj Finance, Axis Bank, Eternal, InterGlobe Aviation, UltraTech Cement and State Bank of India were the major gainers.
Infosys, Tata Consultancy Services, Power Grid and Tech Mahindra were among the laggards.
In Asian markets, South Korea’s Kospi jumped 7.66 per cent. Japan’s Nikkei 225 index and Hong Kong’s Hang Seng index traded higher, while Shanghai’s SSE Composite index quoted lower.
US markets ended higher on Tuesday.
“Global cues turned relatively supportive overnight. US equities ended higher, with the S&P 500 gaining 0.38 per cent and the Nasdaq advancing 0.90 per cent, after softer-than-expected June CPI data reinforced hopes of a more accommodative Federal Reserve policy,” Rajesh Palviya, Head of Research, Axis Direct, said.
Brent crude eased towards USD 85 per barrel after US President Donald Trump withdrew the proposed 20 per cent transit fee through the Strait of Hormuz, he added.
Brent crude, the global oil benchmark, was trading 1 per cent higher at USD 85.63 per barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 739.69 crore on Tuesday, according to exchange data.
“Providing some support to global sentiment, US consumer price inflation eased to 3.5 per cent in June, below market expectations of 3.8 per cent, indicating that underlying price pressures may be moderating.
“The softer-than-expected inflation reading has reinforced expectations that the Federal Reserve could adopt a less aggressive monetary policy stance in the coming months, offering some relief to global risk assets despite heightened geopolitical uncertainty,” Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.
On Tuesday, the Sensex tanked 561.46 points, or 0.72 per cent, to settle at 77,054.94. The Nifty dropped 158.95 points, or 0.66 per cent, to end at 24,052.05.
