After the CPI inflation data revealed a decrease in inflation, the stock markets concluded Tuesday’s session with gains. The NSE Nifty 50 finished trading with a 0.51 percent increase at 22,217.85, while the BSE Sensex closed 0.45 percent higher at 73,104.61.
Ajay Bagga, a Banking and Market Expert, commented on the day’s market movement, stating, “There was a slight uptick in the Indian stock markets today. The immediate trigger was the India CPI print for April indicating a decline on a month-on-month basis. This provided some assurance to the markets. As the rally persisted, the question arises: was it a rebound from oversold levels, or a resurgence of confidence following Phase 4 polling of the 2024 Election process?”
Bagga further remarked, “We maintain a cautious stance and remain on the sidelines for now. Foreign Institutional Investors (FIIs) have offloaded Rs 29,000 crore worth of Indian stocks until May 13th, and this trend will only change with certainty surrounding the June 4th result announcement.”
Adani Enterprises, M&M, Hero MotoCorp, L&T, and JSW Steel were among the top performers in the Nifty 50, while Cipla, TCS, Nestle India, Tata Consumer Products, and Axis Bank experienced notable declines.
In the broader market, the BSE SmallCap index surged by 1.84 percent, and the BSE MidCap index saw a rise of 1.14 percent. Sectors like FMCG, Pharma, and Healthcare recorded slight downturns, whereas Metal, Auto, PSU Bank, and Oil & Gas sectors led the gains.
Global markets remained stable on Tuesday, with MSCI’s world share index hovering near its mid-March all-time high.
“Investors are anticipating key U.S. inflation data, particularly the producer price index scheduled for release at 1230 GMT, ahead of Wednesday’s consumer inflation data. Expectations are for core CPI to ease from 3.8% to 3.6% for April. Investors are closely monitoring whether recent inflationary surprises will persist, potentially impacting the Federal Reserve’s interest rate decisions,” stated Varun Agarwal, MD of Profit Idea.
In Asian markets, the Hang Seng index in Hong Kong continued its upward trend, rising 30 percent from January’s lows, supported by inflows of mainland capital and China’s issuance of one trillion yuan in special bonds. Japanese government bond yields climbed to 0.96 percent, the highest level since November, following the central bank’s unexpected reduction in bond purchases.