MUMBAI— Indian equities advanced on Wednesday after fresh consumer price index (CPI) data showed retail inflation easing to its lowest level in eight years, fueling optimism for stronger discretionary spending and broad-based market gains.
July CPI inflation slowed to 1.55% year-over-year, down from June’s 2.07%, driven largely by declining food prices. This marks the lowest reading since June 2017 and bolstered hopes for a consumption-led boost to economic activity.
The benchmark Sensex ended the session at 80,539.91, up 304 points, or 0.38%, after opening higher at 80,492.17 on the back of the favorable data. The index traded in a narrow range but saw buying interest in auto, metals, and select financials. The Nifty 50 closed at 24,619.35, up 131.95 points, or 0.54%.
“CPI hitting an eight-year low has reinforced market confidence, particularly in discretionary sectors such as autos and metals,” said Vinod Nair, Head of Research at Geojit Financial Services. “Midcaps outperformed, reflecting robust investor appetite. Globally, sentiment improved with the extension of China’s tariff deadline and easing oil prices.”
Top Sensex gainers included Bharat Electronics (BEL), Eternal, Mahindra & Mahindra, Kotak Mahindra Bank, Power Grid, Tata Motors, Bharti Airtel, Bajaj Finance, Sun Pharma, Asian Paints, and Trent. ITC, Ultratech Cement, and Titan closed in the red.
Sectorally, Nifty Auto climbed 1.12%, Nifty Financial Services rose 0.39%, and Nifty Bank added 0.25%, while Nifty IT and Nifty FMCG ended flat. Broader markets also strengthened, with the Nifty Next 50 gaining 0.60%, Nifty Midcap 100 up 0.63%, and Nifty Small Cap 100 rising 0.66%.
The rupee strengthened to 87.51 against the U.S. dollar, up 0.23 paise, supported by optimism over potential progress in the Russia–Ukraine conflict ahead of a scheduled August 15 meeting between U.S. President Donald Trump and Russian President Vladimir Putin. Softer inflation data from both India and the U.S. added to currency market buoyancy. According to Jateen Trivedi of LKP Securities, the rupee is likely to trade in the 87.25–88.00 range in the near term. (Source: IANS)
