Sensex Rises Over 400 Points, Nifty Above 24,700 in Early Trade
The Indian stock market opened the trading session on a positive note on Wednesday, driven by a fall in India’s retail inflation in April to a near six-year low. The benchmark Sensex jumped over 400 points, while the Nifty 50 was trading over 160 points higher, above 24,700 in early trade.
The Sensex, which is a benchmark index of the Indian stock market, opened at 48,364 and rose to 48,764, gaining 404 points, or 0.83%. The broader Nifty 50 index, which represents the 50 large-cap stocks, opened at 14,594 and rose to 14,744, gaining 160 points, or 1.10%.
The positive trend in the stock market was driven by a fall in India’s retail inflation in April to 3.16%, which is the lowest level in nearly six years. The retail inflation rate, which is the rate of change in prices of goods and services consumed by common people, has been steadily declining since January 2022. The fall in retail inflation is expected to boost consumer spending and economic growth.
The fall in retail inflation was driven by a decline in prices of food items, including vegetables, fruits, and meat. The prices of vegetables, which are a major component of the retail inflation basket, fell by 15.2% in April compared to the same month last year. The prices of fruits, meat, and eggs also fell by 10.4%, 8.1%, and 6.1%, respectively, in April compared to the same month last year.
The decline in retail inflation is expected to boost the rupee, which has been under pressure due to a surge in oil prices and a widening trade deficit. The rupee, which has fallen by over 10% against the US dollar in 2022, is expected to recover in the coming days.
The positive trend in the stock market was also driven by a surge in the rupee against the US dollar. The rupee, which opened at 76.47 against the US dollar, rose to 75.98, gaining 49 paise.
The stock market was also driven by a surge in the share prices of midcap and smallcap stocks. The BSE Midcap index rose by 1.35%, while the BSE Smallcap index rose by 1.20%.
The share prices of Tamo, Bharti VI, Coromandel, and Nykaa also surged in early trade. Tamo, which is a leading manufacturer of two-wheelers, rose by 2.50%, Bharti VI, which is a leading telecom operator, rose by 2.20%, Coromandel, which is a leading fertilizer manufacturer, rose by 2.10%, and Nykaa, which is a leading e-commerce platform, rose by 1.80%.
The positive trend in the stock market was also driven by a surge in the share prices of IT and pharma stocks. The share prices of Infosys, TCS, and HCL Technologies, which are the leading IT companies, rose by 1.50%, 1.40%, and 1.30%, respectively. The share prices of Sun Pharma, Dr.Reddy’s Laboratories, and Cadila Healthcare, which are the leading pharma companies, rose by 1.20%, 1.10%, and 1.00%, respectively.
In conclusion, the Indian stock market opened the trading session on a positive note on Wednesday, driven by a fall in India’s retail inflation in April to a near six-year low. The benchmark Sensex jumped over 400 points, while the Nifty 50 was trading over 160 points higher, above 24,700 in early trade.
