Indian Markets Surge with Global Optimism and Eased Inflation

On Wednesday, Indian stock markets saw a promising start as investor confidence was buoyed by declining domestic inflation and optimistic global trends. The anticipation around the upcoming US-Russia summit also played a role in this uplift.

In early trading, the Nifty 50 rose to 24,579.60, marking a gain of 92.20 points or 0.38%, while the BSE Sensex increased by 289.46 points to open at 80,525.05, reflecting a 0.36% rise. As per Motilal Oswal Financial Services, India's July inflation rate eased to an 8-year low of 1.55%, which is well below the Reserve Bank of India's predictions, fueling hopes for a potential interest rate cut.

Oil prices reaching a two-month low of USD 66 per barrel and hopes for a favorable outcome from the US-Russia discussions on August 15 regarding a Ukraine ceasefire further strengthened investor sentiments. Market confidence was evident as all major indices on the NSE rose, including Nifty 100, Nifty Small Cap 100, and Nifty Midcap.

Sectors across the board showed gains, with Nifty Auto, Media, Metal, Pharma, and PSU Banks leading the way. On the corporate front, significant first-quarter earnings announcements were anticipated from companies like BPCL, Max Healthcare, Muthoot Finance, and United Spirits, among others.

Globally, the US July inflation stood steady at 2.7%, slightly under the forecast, maintaining predictions for an interest rate cut. In the commodities market, gold prices remained high in India due to a weaker dollar, though gains were limited by a potential US-China trade truce.

Asian markets mirrored this positive sentiment with gains across major indices. Japan's Nikkei 225, Singapore's Straits Times, Hong Kong's Hang Seng, Taiwan's Weighted Index, and South Korea's KOSPI all registered increases in their early trades. (ANI)

(With inputs from agencies.)