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Indian stocks rallied sharply on Thursday morning after consumer inflation in the US showed some moderation in July. Investor sentiments were firm on hopes that inflation has probably plateaued.
At 0926 IST, Sensex traded at 59,374.61 points, up 557.32 points or 0.95 per cent, whereas Nifty traded at 17,680.10 points, up 145.35 points or 0.83 per cent As many as 46 Nifty 50 stocks traded in the green this morning, National Stock Exchange data showed. "US inflation data at 8.5 per cent in July will be a near-term boost to markets. Many market experts believe that the peaks of inflation and Fed hawkishness are behind us," V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. The inflation print for the month was down from a four-decade high of 9.1 per cent in June. "The near-term texture of the market is likely to be bullish. But this need not sustain for two reasons. One, market valuations are high and this will attract profit booking. Two, details of the US inflation data reveal that inflation is unlikely to drift down steadily since wage growth and rents continue to rise," Vijayakumar added. Meanwhile, the rally in Indian stock indices has been continuing for the past three weeks on account of the return of foreign portfolio investors after nine long months as well as inflation seemingly plateauing. Foreign portfolio investors becoming net buyers in Indian stock markets again after nine long months renewed the investors' sentiment. In July, FPIs bought equities worth Rs 4,989 crore and became net buyers after nine months, National Securities Depository (NSDL) data earlier showed. In the past one month, the indices - Sensex and Nifty - gained around 8-9 per cent each, respectively. Notably, the Indian stocks recorded their best weekly performance during the week to July 22 marking its best week since February 2021. For fresh cues, Indian stock market investors will also await retail inflation data for July, which is expected on Friday. (ANI)
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