Stock Market Today: Sensex, Nifty In Green Amid Positive Inflation Data

Stock Market Today: The Sensex and Nifty had been on a six-day losing streak due to disappointing Q3 earnings, rising US tariff tensions, and ongoing FII outflows

Stock Market Today: In the broader market, the BSE Midcap index increased by 0.2 per cent

Source : ABPLIVE AI

Indian benchmark indices, Sensex and Nifty opened higher on Thursday as investors reacted to domestic inflation data, which suggested the possibility of another rate cut, despite concerns over US inflation impacting risk sentiment. 

The Sensex and Nifty had been on a six-day losing streak due to disappointing Q3 earnings, rising US tariff tensions, and ongoing FII outflows. However, financials, auto, and healthcare stocks drove the rebound in Nifty today.

At 10 am, the Sensex gained 424.45 points, or 0.56 per cent, closing at 76,595.53, while the Nifty rose 134.20 points, or 0.58 per cent, to reach 23,179.45. A total of 2,190 shares advanced, 928 declined, and 125 remained unchanged.

India's retail inflation eased to a five-month low of 4.3 per cent in January, down from 5.2 per cent in December, primarily driven by lower food prices. This sparked optimism for potential monetary easing by the Reserve Bank of India. However, stronger-than-expected US inflation data tempered those hopes.

The release of India's domestic inflation data, just hours ahead of the US report, initially raised expectations for further policy relaxation from the Reserve Bank of India. However, the unexpectedly high US inflation figures quickly cooled those prospects.

US consumer prices surged 0.5 per cent in January, pushing the annual inflation rate to 3 per cent, up from 2.9 per cent in December. Federal Reserve Chair Jerome Powell's testimony before the House Financial Services Committee stressed that the central bank's battle against inflation is far from over, dimming hopes for near-term rate cuts.

Broader Market

In the broader market, the BSE Midcap index increased by 0.2 per cent, while the BSE Smallcap index rose by 0.4 per cent. However, the smallcap index remains nearly 19 per cent below its all-time high.

Sectorial Update

Cipla, Dr Reddy's, Kotak Mahindra, Bajaj Finserv, and Sun Pharma were among the top gainers on the Nifty, each rising by 2 per cent. On the other hand, Tech Mahindra, Eicher Motors, Tata Consumer, Hero MotoCorp, and Hindalco were the biggest decliners, with losses ranging from 1 per cent to 2 per cent.