Stock markets: Following a rally in global markets and moderating US CPI inflation data, the Sensex and Nifty reached their all-time high levels, resulting in a rebound for the benchmark equity indices in early trade on Thursday.
Furthermore, buying in Tata Consultancy Services, a market heavyweight, contributed to the positive trading sentiment. The BSE Sensex rose by 391.48 points to 65,785.38, while the NSE Nifty increased by 111.3 points to 19,495.60.
Both benchmark indices later reached new all-time high levels, with the Sensex peaking at 65,943.57 and the Nifty reaching 19,540.25. Major gainers from the Sensex pack included Tata Steel, Tata Consultancy Services, Mahindra & Mahindra, Infosys, JSW Steel, Kotak Mahindra Bank, State Bank of India, and HDFC Bank.
Tata Consultancy Services witnessed a 1.62% increase a day after announcing its June quarter earnings. The company reported a 16.83% rise in net profit to Rs 11,074 crore, but expressed caution about growth prospects for the fiscal year due to market uncertainties.
On the other hand, HCL Technologies, Power Grid, Asian Paints, Hindustan Unilever, Maruti, and Nestle were among the laggards. Despite reporting a 7.6% year-on-year rise in net profit for the June quarter, HCL Technologies saw its shares trading over 1% lower, possibly due to new order wins.
Asian and US markets performance:
In Asian markets, Seoul, Tokyo, Shanghai, and Hong Kong were trading positively. Meanwhile, the US markets ended on a positive note on Wednesday. According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the ongoing global rally in stock markets will receive a further boost from the latest US consumer inflation data for June, which came in at 3%, better than the market’s expectation of 3.1%.
As for domestic data, retail inflation increased to a three-month high in June due to rising prices of kitchen essentials, while factory output expanded by 5.2% in May, according to government data released on Wednesday. Retail inflation based on the Consumer Price Index (CPI) rose to 4.81% in June, remaining within the comfort zone of the Reserve Bank.
Rupee strengthens against the dollar:
The Indian rupee appreciated by 21 paise against the US dollar in early trade on Thursday. This was attributed to a rally in domestic equities and the weakening of the greenback against major rivals overseas, which boosted investor sentiment. Encouraging macroeconomic data also contributed to the strength of the local currency. At the interbank foreign exchange, the domestic unit opened strongly at 81.98 against the dollar and further strengthened to 81.97, registering a gain of 21 paise over its previous close. The rupee remained stable in the range of 81.95-81.99 against the American currency during the initial trade.
(With inputs from PTI)
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
