Did Sensex and Nifty Rise After Inflation Drops and Geo-Political Tensions Ease?
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Synopsis
Discover how the Indian stock market reacted positively to the latest inflation figures and eased geo-political tensions. The indices surged, reflecting investor confidence and strategic market movements. Explore insights on sector performance and what this means for future investments.
Key Takeaways
- Indian stock indices opened positively due to decreased retail inflation.
- Midcap and smallcap stocks showed significant gains.
- All sector indices traded positively, with major gains in various sectors.
- Expert predictions indicate possible RBI rate cuts.
- FIIs and DIIs have shown contrasting market activities.
Mumbai, May 14 (NationPress) The Indian frontline indices started positively on Wednesday, buoyed by a significant drop in retail inflation to a multi-year low and a reduction in geo-political tensions.
At approximately 9:25 am, the Sensex gained 414 points, or 0.51%, reaching 81,562, while the Nifty increased by 136 points, or 0.55%, to hit 24,712.
Midcap and smallcap stocks showed a robust buying trend, with the Nifty midcap 100 index rising by 510 points, or 0.92%, to 56,030, and the Nifty smallcap 100 index climbing 132 points, or 0.78%, to 17,035.
Sector-wise, all indices were performing well, with notable gains in the auto, IT, PSU bank, FMCG, metal, energy, infrastructure, and PSE sectors.
“Following this positive opening, the Nifty is expected to find support at 24,500, followed by 24,400 and 24,300 levels. On the upside, immediate resistance is at 24,700, with further resistance at 24,800 and 24,850,” stated Hardik Matalia from Choice Broking.
In the Sensex bracket, major gainers included Tata Steel, Bharti Airtel, Tech Mahindra, Infosys, Eternal, HCL Tech, M&M, Bajaj Finserv, L&T, TCS, SBI, and NTPC. Conversely, significant losses were noted in Tata Motors, Asian Paints, IndusInd Bank, HUL, Nestle, and Kotak Mahindra Bank.
Earlier, India's retail inflation declined to 3.16% in April from 3.34% in March, marking its lowest point since July 2019.
“With a notable reduction in crude oil prices, subdued domestic demand, and stable food prices, we anticipate the RBI will implement aggressive rate cuts,” remarked Devarsh Vakil, Head of Prime Research at HDFC Securities.
The Asian stock markets displayed mixed performance, with Hong Kong, Shanghai, Seoul, and Jakarta trading positively, while Japan and Bangkok experienced declines.
In the US markets, trading closed in mixed territory on Tuesday, with the main index Dow Jones ending lower, while the technology index Nasdaq rose for the second consecutive day following softer-than-expected inflation data.
On May 13, foreign institutional investors (FIIs) sold equities worth Rs 476 crore, whereas domestic institutional investors (DIIs) continued their buying streak for the third day, acquiring equities valued at Rs 4,273 crore on the same day.
Point of View
I emphasize that the current market rise reflects positive economic indicators. The drop in inflation and easing tensions suggest a stabilizing economy. It's crucial for investors to remain informed and vigilant in these rapidly changing times.
NationPress
24/07/2025
Frequently Asked Questions
What caused the rise in Sensex and Nifty?
The rise in Sensex and Nifty was primarily due to the drop in retail inflation to a multi-year low and easing geo-political tensions.
How did sectoral indices perform?
All sectoral indices showed positive performance, with major gains in auto, IT, and FMCG sectors.
What are the expectations for the RBI?
Experts anticipate that the RBI may implement aggressive rate cuts due to the current economic conditions.
What impact did foreign institutional investors have?
FIIs sold equities worth Rs 476 crore, while domestic institutional investors continued buying, acquiring equities valued at Rs 4,273 crore.
What are the resistance and support levels for Nifty?
Nifty can find support at 24,500, with immediate resistance at 24,700.
