AMN / WEB DESK
Indian equity benchmarks closed firmly in the green on Wednesday, propelled by a sharp drop in domestic retail inflation to an eight-year low. The positive data spurred broad-based buying, particularly in midcap stocks and rate-sensitive sectors like auto and metals.
India’s Consumer Price Index (CPI) for July eased to 1.55%, the lowest level since June 2017, primarily due to declining food prices. Buoyed by this news, the BSE Sensex rose 304 points, or 0.38%, to settle at 80,539.91. The NSE Nifty 50 gained 131.95 points, or 0.54%, to close at 24,619.35.
The rally had significant breadth, with the Nifty Midcap 100 soaring 0.63% and the Nifty Small Cap 100 adding 0.66%. Sectorally, the Nifty Auto index was the top performer, jumping 1.12%.
Analysts noted that global sentiment also improved following an extension of China’s tariff deadline and easing oil prices. The Indian Rupee strengthened by 23 paise to 87.51 against the US dollar. Market participants are now looking ahead to the scheduled meeting between US President Trump and Russian President Putin on August 15.
Version 2 (Bulleted Summary for Quick Reading)
Market Highlights: Wednesday’s Rally at a Glance
- Benchmark Indices Close Higher:
- Sensex: Closed at 80,539.91 (+304 points, +0.38%)
- Nifty 50: Closed at 24,619.35 (+131.95 points, +0.54%)
- Primary Catalyst: Investor sentiment was boosted after India’s retail inflation (CPI) for July fell to 1.55%, an eight-year low. This has raised expectations for a revival in consumer discretionary spending.
- Broad Market Outperforms: The rally was broad-based, with midcap and smallcap stocks attracting strong investor interest.
- Nifty Midcap 100: +0.63%
- Nifty Small Cap 100: +0.66%
- Top Performing Sectors:
- Nifty Auto: +1.12%
- Nifty Bank: +0.25%
- Nifty Financial Services: +0.39%
- Nifty IT and FMCG ended flat.
- Key Gainers & Losers:
- Gainers: BEL, Mahindra and Mahindra, Tata Motors, Kotak Bank, Power Grid.
- Losers: ITC, Ultratech Cement, Titan.
- Currency & Global Cues: The Rupee strengthened to 87.51 against the dollar. Global sentiment was aided by an extension of the China tariff deadline. Markets are now focused on the upcoming Trump-Putin meeting on August 15.
Version 3 (Analytical Tone)
Low Inflation Ignites Discretionary Spending Hopes, Fuels Broad-Based Rally
A significant drop in India’s retail inflation ignited a wave of optimism on Dalal Street this Wednesday, leading to a strong session for equities. With the July CPI hitting an eight-year low of 1.55%, investors are betting on an impending revival in consumer discretionary spending, a sentiment that was clearly reflected in the outperformance of the auto and metal sectors.
The benchmark Sensex gained 0.38% to close at 80,539.91, while the Nifty 50 advanced 0.54% to 24,619.35. However, the true strength of the market was visible in the broader indices. The Nifty Midcap 100’s 0.63% surge underscored the strong investor appetite, as noted by Vinod Nair, Head of Research at Geojit Investments.
Globally, tailwinds from an extended deadline on China’s tariffs and softer oil prices provided additional support. According to analysts, India’s growth-inflation dynamics for FY26 remain favorable despite global uncertainties.
The positive domestic data also buoyed the Rupee, which appreciated to 87.51 against the dollar. Traders are now anticipating the crucial meeting between US President Trump and Russian President Putin on August 15 for further directional cues.
