MUMBAI: The Indian stock market settled in green on Wednesday after the consumer price index (CPI) decreased to an eight-year low, amid strong buying in midcap stocks.
India’s inflation rate based on CPI eased further to 1.55 per cent in July this year amid a decline in food prices. This is the lowest level of year-on-year retail inflation since June 2017.
Sensex settled at 80, 539.91, up 304 points or 0.38 per cent. The 30-share index opened with a decent gap-up at 80, 492.17 against last session's closing of 80, 235.59, buoyed by positive inflation data. The index remained range-bound amid buying in specific sectors, including auto and metal.
Nifty closed 24, 619.35, up 131.95 points or 0.54 per cent.
"Indian equities experienced a broad-based optimism as CPI hit an eight-year low, boosting hopes for a revival in discretionary spending, led by autos and metals. Midcaps outperformed, reflecting strong investor appetite. Globally, sentiment improved on the extension of China’s tariff deadline and easing oil prices, " said Vinod Nair, Head of Research, Geojit Investments Limited.
Despite uncertainties around Trump’s trade stance and global risks, India’s growth-inflation dynamics remain favourable for FY26, with the risk of a marginal downgrade based on tariff updates. India looks forward to the Trump-Putin meeting dated 15th August, he added.
BEL, Eternal, Mahindra and Mahindra, Kotak Bank, Power Grid, Tata Motors, Bharti Airtel, Bajaj Finance, Sun Pharma, Asian Paint, and Trent were among the top gainers from the Sensex pack. While ITC, Ultratech Cement, and Titan ended the session in negative territory.
The majority of sectoral indices grabbed the market sentiment. Nifty Fin Services jumped 103 points or 0.39 per cent, Nifty Bank increased 137 points or 0.25 per cent, and Nifty Auto escalated 266 points or 1.12 per cent. Nifty IT and Nifty FMCG settled flat.