Indian stock market hits fresh record highs
The Indian stock market surged to new record highs on Thursday, boosted by easing retail inflation in both India and the US, and expectations that the US Federal Reserve might cut interest rates soon.
The Sensex gained 379.66 points, or 0.50%, to trade at 76,986.23, while the Nifty rose 118.00 points, or 0.51%, to 23,441.00. Market sentiment was positive, with 2,123 shares advancing, 346 shares declining, and 107 shares remaining unchanged.
India’s annual retail inflation eased to a 12-month low of 4.75% in May from 4.83% in April, government data showed on Wednesday.
“There is good news on the inflation front, both in the US and in India,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
“The takeaway from the inflation numbers is that the disinflation process is well on track. From the market perspective, this is positive news, particularly for banking stocks.”
Strong buying by both foreign and domestic institutional buyers also supported the stock markets.
Leading the gains on the Nifty were Nestle, Divis Labs, HDFC Life, Shriram Finance, and LTIMindtree. On the downside, HUL, Britannia, Tata Consumer, and ICICI Bank were among the major losers.
By 10:28 AM, the Sensex had moderated its gain to 218 points, and the Nifty was up by 63 points.
