FX.co ★ Sensex Rises after Inflation Data

On Wednesday, India's stock markets experienced a recovery, with equities rising by 465.6 points, or 0.6%, to reach 81,639 during early trading. This rebound came after the previous session recorded the sharpest decline in over a month. The upswing was influenced by unexpectedly low inflation figures for April, both in the United States and domestically. India's inflation rate dropped to 3.16% in April, marking its lowest level since July 2019, which fueled optimism about potential interest rate cuts. The BSE Sensex mirrored gains seen on Wall Street overnight, as easing trade tensions and favorable inflation data bolstered investor confidence. Almost all sectors saw positive momentum, with the technology sector leading the charge; Infosys, Coforge, and Tech Mahindra each saw increases exceeding 1%. Additionally, small- and mid-cap stocks also advanced, gaining approximately 0.3%. The Nifty 50 index rose by 0.7%, surpassing the 24,700 mark, with notable performers such as Tata Steel (up 4.3%), JSW Steel (1.5%), and Mahindra & Mahindra (1.0%). Bharti Airtel experienced a significant increase of 2.5% following a reported rise in net profit for the fourth quarter.