Title: Sensex Surges 500 points and Nifty Trades Above 19,500, Boosted by Strong Global Cues
The Indian stock market kicked off on a positive note today, as the benchmark indices, Sensex and Nifty, gained solid ground following the upward trajectory in global stock markets. This surge came after the release of US consumer inflation data, which revealed a significant slowdown in June, with inflation dropping to 3%, its lowest level since March 2021. As of 9:50 am, the BSE Sensex soared over 535 points to reach 65,929, while the NSE Nifty50 gained 149 points, breaching the 19,500 mark at 19,533.
On the Sensex platform, early gainers included companies like TCS, Infosys, M&M, Tata Steel, TechM, Bajaj Finserv, and Reliance, with their stocks experiencing positive momentum. Conversely, PowerGrid, HCL, Maruti, Nestle, Sun Pharma, and NTPC faced downward pressure, resulting in losses. One notable company, Patanjali Foods, witnessed a decline of 5% as its parent company, Patanjali Ayurved, announced an Offer For Sale (OFS) to divest up to a 9% stake. The OFS was set at a floor price of Rs 1,000 per share, representing a significant discount.
In the broader market, both the BSE Midcap and Smallcap indices also experienced gains, rising by up to 0.6%.
All sectoral indices were trading in the green, with the metal, realty, and information technology sectors leading the pack, each displaying a 1% increase.
In the previous session, the S&P BSE Sensex closed with a loss of 224 points at 65,394, while the NSE Nifty concluded 55 points lower at 19,384.
The positive sentiment in the Indian markets can be attributed to favorable global cues, primarily driven by the easing of inflationary concerns in the United States. Investors are finding renewed confidence in the market, as lower inflation rates offer stability and reassurance for future investments.
As market participants continue to monitor key economic indicators and global developments, the stock market is expected to exhibit heightened volatility in the coming sessions. Traders and investors alike will pay close attention to various factors, including ongoing corporate earnings announcements, government policies, and the progress of vaccination drives against the backdrop of the Covid-19 pandemic.
Disclaimer: This article is intended for informational purposes only and should not be construed as financial advice. As with any investment, it is important to conduct thorough research and seek professional guidance before making any investment decisions.
