Sensex, Nifty Rally As Fed Bets Ease After US Inflation Data
(RTTNews) - Indian shares rose on Thursday, though markets finished off their day's highs, tracking a lackluster trend in European markets after a couple of Fed officials took a tough line on the need for more large rate increases.
Underlying sentiment remained supported after a report showed U.S inflation cooled more than expected in July, helping ease recession fears and worries about aggressive monetary tightening.
The benchmark S&P BSE Sensex hit an intraday high of 59,484.99 before paring some gains to end the session up 515.31 points, or 0.88 percent, at 59,332.60.
Likewise, the broader NSE Nifty index pared some early gains to settle at 17,659, up 124.25 points, or 0.71 percent, from its previous close.
Financials and IT stocks led the surge, with Tech Mahindra, HDFC, Bajaj Finance, IndusInd Bank and Axis Bank climbing 2-3 percent.
Among the prominent decliners, Hindustan Unilever, NTPC, ITC, Apollo Hospitals Enterprise and Tata Consumer Products fell 1-2 percent.
Delhivery shares slumped 5.8 percent on brokerage downgrades after the company reported a wider loss in its first quarter ended June 2022.
The Indian economy can handle some erosion of its foreign exchange reserves as its external position is "very strong", S&P Global Ratings said.
"India has certainly suffered deterioration in terms of trade over the past six months. That has been a drag on the foreign exchange reserves, which we have seen declining," said Andrew Wood, director of Asia Pacific Sovereign Ratings at S&P Global Ratings.
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