Sensex/Nifty gained on lower inflation data; market will remain volatile till elections: Experts
May 14, 2024
Mumbai (Maharshtra) [India], May 14 : The stock markets concluded Tuesday's session with gains after the CPI inflation data showed a decline in inflation.
The NSE Nifty 50 concluded trading with a 0.51 per cent gain at 22,217.85, while the BSE Sensex closed 0.45 per cent higher at 73,104.61.
"There was a small up move in the Indian stock markets today. The immediate catalyst was the India CPI print for April showing a month on month decline. That lent some confidence to the markets. As the rally continued, the question is, was it a bounce from over sold levels, or is it a return of confidence post the Phase 4 polling of the Election 2024 process" said Ajay Bagga, Banking and Market Expert.
He added "We remain cautious and on the sidelines for now. FIIs have sold Rs 29,000 crores of Indian stocks till May 13th, and that trend will only change with certainty around the June 4th result announcement".
In the top gainers of the Nifty 50 were Adani Enterprises, M&M, Hero MotoCorp, L&T, and JSW Steel, whereas Cipla, TCS, Nestle India, Tata Consumer Products, and Axis Bank were notable laggards.
In the broader market, the BSE SmallCap index surged by 1.84 per cent, and the BSE MidCap index was up by 1.14 per cent. Sectors like FMCG, Pharma, and Healthcare experienced slight declines, while Metal, Auto, PSU Bank, and Oil & Gas sectors led the gains.
Global markets remained steady on Tuesday, with MSCI's world share index maintaining its proximity to mid-March's all-time high.
"Investors awaited key U.S. inflation data, particularly the producer price index scheduled for release at 1230 GMT, which precedes Wednesday's consumer inflation data. Expectations are for core CPI to ease from 3.8% to 3.6% for April, with investors closely monitoring whether recent upside surprises in inflation will persist, potentially impacting the Federal Reserve's interest rate decisions" said Varun Agarwal, MD, Profit Idea.
In the Asian markets, the Hang Seng index in Hong Kong continued its upward trajectory, up 30 per cent from January's lows, supported by mainland capital inflows and China's issuance of one trillion yuan in special bonds. Japanese government bond yields rose to 0.96 per cent, the highest since November, following the central bank's unexpected reduction in bond purchases.
