Sensex, Nifty soar in early trade amid rally in global markets

JSW Steel, Tech Mahindra, Tata Steel, Infosys and Wipro were the major gainers

stock-market-bse [File] PTI

Benchmark equity indices jumped in early trade on Wednesday amid a rally in global markets on favourable US inflation data.

The 30-share BSE Sensex jumped 645.08 points to 65,578.95 in early trade. The Nifty climbed 209.8 points to 19,653.35.

Among the Sensex firms, JSW Steel, Tech Mahindra, Tata Steel, Infosys, Wipro, Tata Consultancy Services, HCL Technologies and Axis Bank were the major gainers.

Power Grid, Nestle, Mahindra & Mahindra and Asian Paints were the laggards.

In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong were trading in the positive territory.

The US markets ended with significant gains on Tuesday.

"The October US inflation data is a game changer for the stock market. The 3.2 per cent October inflation print is lower-than-expected. More importantly, the mere 0.2 per cent MoM (Month-on-Month) increase in core inflation is hugely positive.

"The takeaway from these numbers is that the Fed is done with rate hikes and the timeline for rate cuts in 2024 is likely to be advanced. The sharp recovery in US markets will be reflected in India, too," V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.

A decline in CPI inflation in India is also a favourable factor, Vijayakumar added.

Global oil benchmark Brent crude climbed 0.33 per cent to USD 82.74 a barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,244.44 crore on Tuesday, according to exchange data.

Equity markets were closed on Tuesday on account of Diwali Balipratipada.

The BSE benchmark fell 325.58 points or 0.50 per cent to settle at 64,933.87 on Monday. The Nifty declined 82 points or 0.42 per cent to 19,443.55.

Continuing the downward trend, retail inflation slipped to a four-month low of 4.87 per cent in October, mainly due to easing food prices and inched towards the Reserve Bank's target of 4 per cent, according to government data released on Monday. Wholesale price inflation remained in the negative territory for the seventh month in a row in October at (-) 0.52 per cent on easing prices of food items.

A negative WPI inflation, technically termed as deflation, means that overall wholesale prices have been falling year-on-year.

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