Last Updated: September 14, 2023, 10:05 IST
Equity benchmark indices scaled fresh highs at Thursday’s open, tracking gains in other Asian markets after US consumer price index rose in line with expectations. The BSE Sensex rose 200 points to 67,687, and the Nifty index gained 70 points to 20,139.
The US inflation report reaffirmed investor consensus that the Fed will likely hold rates for sometime now.
Tata Steel, Wipro, JSW Steel, Tech M, L&T, IndusInd Bank, Hindalco and Adani Enterprises were the leading gainers acros the two benchmarks, rising up to 1.7 per cent. While HUL, Adani Ports, ITC, NTPC were the few losers.
The broader markets maintained their outperformance over the benchmarks. The BSE MidCap and SmallCap indices jumped up to 1 per cent.
Gains were spread across all sectors, with Nifty Metal, Nifty Realty and PSB indices leading the gains with a 1 per cent upmove.
Among stocks, Bombay Dyeing zoomed 17 per cent after it said it will sell a 22-acre land parcel in central Mumbai to Japan’s Sumitomo Realty & Development Company for Rs 5,200 crore.
“India has become the best performing large market in September with 4.2 per cent gains. This move to record highs breaching the psychological 20000 mark on the Nifty has been achieved with an impressive 4.3 per cent rise in Bank Nifty,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“While the CPI inflation data for August has come at 3.7 per cent against expectations of 3.6 per cent, core inflation was on expected lines coming at 4.3 per cent. So the market thinking is that the Fed is likely to pause in September,” Vijayakumar said.
Deepak Jasani, Head of Retail Research at HDFC Securities said, “The momentum in the Nifty and the broad market can continue. Nifty could stay in the 19865 – 20140 band for the near term.”
Global Cues
Asian equities rose on Thursday on easing rate concerns after U.S. consumer price data showed core inflation moderated to 4.3 per cent in August from 4.7 per cent in July, the smallest year-on-year rise in nearly two years.
However, the overall retail inflation accelerated 3.7 per cent in August, the most in 14 months, on rising gasoline prices.
Tokyo’s Nikkei rose 0.8 per cent to a one-week high. The S&P 500 rose 0.1 per cent and futures rose 0.2 per cent in Asia. European futures were flat.
Tokyo’s Nikkei rose 0.8 per cent to a one-week high. The S&P 500 rose 0.1 per cent and futures rose 0.2 per cent in Asia. European futures were flat.
