The BSE Sensex and NSE Nifty hit seven-month highs in the afternoon trading session on Thursday despite dipping in the morning, after US President Donald Trump said India was negotiating a zero-tariff trade deal with the United States. This came a day after India released better-than-expected retail inflation numbers.
Indian stock market indices Nifty and Sensex shot up, with the former lifting close to 1.7 per cent while the latter climbed 1.75 per cent.
The auto indices also outperformed, with Tata Motors climbing as high as 4.5 per cent.
Metals, the financial sector, and IT stocks also rose.
On Wednesday, the Centre reported retail inflation numbers, with it easing to almost a six-year low of 3.16 per cent in April, as prices of vegetables, fruits, pulses, and other protein-rich items remain subdued. This might also urge the RBI to cut repo rates in June.
CPI-based inflation a month ago (March 2025) was 3.34 per cent and was 4.83 per cent a year ago (April 2024).
[This is a developing story and is being updated]
