Mumbai Stock Market Rebounds: Sensex Gains 317 Points Amid Falling Inflation
Market Recovery in Mumbai
Mumbai: The stock market ended its four-day decline on Tuesday, with the benchmark Sensex rising by 317 points, driven by increased buying in the auto and pharmaceutical sectors. This uptick coincided with a drop in retail inflation, which has reached its lowest level in over six years, approaching the Reserve Bank of India's (RBI) comfort zone.
The 30-share BSE Sensex increased by 317.45 points, or 0.39%, closing at 82,570.91. At its peak during the day, it surged by 490.16 points, reaching 82,743.62.
Similarly, the 50-share NSE Nifty rose by 113.50 points, or 0.45%, to finish at 25,195.80.
Previously, the Sensex had fallen by 1,459.05 points, or 1.74%, over the last four trading sessions, while the Nifty had decreased by 440 points, or 1.72%.
Among the top gainers on the Sensex were Sun Pharma, Trent, Tata Motors, Bajaj Finserv, Mahindra & Mahindra, and Bajaj Finance.
Conversely, HCL Tech saw a decline of 3.31% after reporting a 9.7% drop in consolidated net profit for the June quarter, impacted by rising expenses and a one-time client bankruptcy.
Other companies that faced losses included Tata Steel, Kotak Mahindra Bank, and Axis Bank.
Retail inflation fell to a six-year low of 2.1% in June, nearing the RBI's target range, primarily due to lower food prices, particularly vegetables, influenced by a favorable monsoon. The Consumer Price Index-based inflation was recorded at 2.82% in May and 5.08% in June 2024, marking a downward trend since November 2024.
"Market sentiment is improving, bolstered by a mix of global and domestic factors. There is growing optimism regarding a potential interim trade agreement with the US, which may reduce tariff-related risks," stated Vinod Nair, Head of Research at Geojit Investments Limited.
Asian markets showed positive trends, with South Korea's Kospi, Japan's Nikkei 225, and Hong Kong's Hang Seng all closing higher, while Shanghai's SSE Composite index ended lower.
European markets were also trading positively.
On Monday, US markets closed in the green.
The global oil benchmark, Brent crude, saw a slight decrease of 0.17%, settling at USD 69.09 per barrel.
Foreign Institutional Investors (FIIs) sold equities worth Rs 1,614.32 crore on Monday, while Domestic Institutional Investors (DIIs) purchased stocks worth Rs 1,787.68 crore, according to exchange data.
On the previous trading day, the Sensex had dropped by 247.01 points, or 0.30%, closing at 82,253.46, while the Nifty fell by 67.55 points, or 0.27%, to 25,082.30.