Indian markets surge over 1.6% on softened US inflation data.
Indian stock markets ended the week on a high note, with benchmark indices Sensex and Nifty gaining over 1.6% on Friday. Softer US inflation raised hopes of an imminent Fed rate cut in September.
The BSE Sensex closed at 80,436.84, up 1.68% or 1,330 points. The NSE Nifty 50 settled 1.65% higher at 24,541.15 points.
Market sentiment was boosted by the 2.9% US CPI inflation figure for July — the smallest annual rise since March 2021. This fuelled hopes of the US Fed cutting rates in the coming months.
Robust US retail sales and declining weekly jobless claims further eased recession fears. The Japanese Yen’s stability also aided the global market recovery.
Domestically, falling retail and food inflation in India provided optimism. Both prints slipped below 4% and 13-month lows respectively in July.
Among sectors, IT, auto, realty, metal, and banking stocks witnessed heavy buying. Wipro, Tech Mahindra, Grasim Industries topped Nifty gainers.
However, weak industrial output, FII selling, and sluggish Q1 earnings remained challenges. The Supreme Court’s mining ruling weighed on metal shares.
Most domestic indices ended the week with up to 1% gains. FIIs turned net buyers on Friday but maintained overall selling this month.
The broader market sentiment was lifted by the encouraging global macroeconomic data indicators emerging across regions.
