Sensex, Nifty rebound as global markets rally on soft US inflation

Benchmark indices Sensex and Nifty rebounded sharply in early trade on Friday after four days of losses, tracking a global market rally driven by softer US inflation data and renewed expectations of interest rate cuts by the Federal Reserve.

Mumbai: Equity benchmark indices Sensex and Nifty jumped in early trade on Friday after four days of decline amid a rally in global markets as a lower-than-expected US consumer price inflation data for November reinforced expectations of further interest rate cuts by the Federal Reserve.

Fresh foreign fund inflows also drove the equity markets higher.

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The 30-share BSE Sensex jumped 448.27 points to 84,930.08 in early trade. The 50-share NSE Nifty climbed 131 points to 25,946.55.

All the 30-Sensex firms were trading in positive territory during the initial trade. Tata Motors Passenger Vehicles, Reliance Industries, Bharat Electronics, Bajaj Finance, Bajaj Finserv, Infosys, Power Grid and Tata Consultancy Services were among the biggest gainers.

In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index traded in positive territory.

US markets ended higher on Thursday.

Foreign Institutional Investors (FIIs) bought equities worth Rs 595.78 crore on Thursday, according to exchange data. Domestic Institutional Investors (DIIs) also bought stocks worth Rs 2,700.36 crore in the previous trade.

Cooling inflation in the US is imparting resilience to the US economy and markets, VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.

“This augurs well for global equity markets as 2025 draws to a close,” he added. Brent crude, the global oil benchmark, dipped 0.23 per cent to USD 59.68 per barrel.

“Global markets are trading with a positive bias, led by firm gains in US equities after lower-than-expected November consumer price inflation data reinforced expectations of further interest-rate cuts by the US Federal Reserve, triggering a shift toward a risk-on environment,” Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

Logging its fourth day of decline on Thursday, the Sensex dropped by 77.84 points or 0.09 per cent to settle at 84,481.81 in a volatile session. The Nifty ended flat, skidding 3 points or 0.01 per cent to 25,815.55.