Stocks surge to four-month high, Sensex reclaims 59K-level

Sectorally, BSE bankex, finance, IT and realty climbed up to 1.64%, while FMCG, metal, auto, telecom and basic materials nursed losses.

Stocks surge to four-month high, Sensex reclaims 59K-level
The NSE Nifty 50, posting gains for four straight sessions, closed 0.71% higher at 17,659 while the BSE Sensex rallied 515.31 points or 0.88% to reclaim the 59,000 mark and end the session at 59,332.60, its highest closing since April 8, 2022.

Shares surged to a four-month high on Thursday as softer-than-anticipated US inflation data calmed the markets and fears of very aggressive rate hikes by the US Fed receded. The indices were driven up by gains in IT and bank stocks. The NSE Nifty 50, posting gains for four straight sessions, closed 0.71% higher at 17,659 while the BSE Sensex rallied 515.31 points or 0.88% to reclaim the 59,000 mark and end the session at 59,332.60, its highest closing since April 8, 2022.

Sustained purchases by foreign investors help propel stocks as did the positive cues from the Asian markets. Foreign investors have bought a net $2.24 billion worth of Indian equities so far this month, compared with $518 million worth of net sales in the same period last month, according to data from Refinitiv.

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The Nifty’s IT index settled 1.8% higher, with Infosys, Tata Consultancy Services and Wipro adding between 1% and 2%. Nifty’s public sector bank index climbed 2.4% to snap a five-day losing run and was the best performer among other sub-indices. Shares of State Bank of India rose nearly 2%.

Axis Bank was the top gainer in the Sensex pack, climbing 2.75%, followed by Bajaj Finance, HDFC, Tech Mahindra, TCS, SBI and Wipro. On the other hand, ITC, NTPC, HUL, Bharti Airtel, Maruti and Nestle India were among the major laggards, sliding as much as 1.56%.

Globally, shares edged higher on optimism of a slower pace of interest rate hikes after data suggested that the US inflation might be peaking. The US CPI, in the 12 months through July, increased by a weaker-than-expected 8.5% after a 9.1% rise in June.

“Investors cheered the US inflation data for July, which came in below the estimate and raised hopes that the Federal Reserve may not be that aggressive in hiking interest rates in its next meeting. Hence, the optimism spread across Asian markets, including India where investors lapped up banking, IT and realty stocks…” said Shrikant Chouhan, head of equity research (retail), Kotak Securities.

Sectorally, BSE bankex, finance, IT and realty climbed up to 1.64%, while FMCG, metal, auto, telecom and basic materials nursed losses.

Broader markets gained as well, with the BSE midcap index advancing 0.83% and the smallcap gauge rising 0.52%.

Meanwhile, the international oil benchmark, Brent crude, was trading 0.92% higher at $98.30 per barrel.

Foreign institutional investors (FIIs) remained net buyers in the capital market as they purchased shares worth Rs 1,061.88 crore on Wednesday, according to exchange data.

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