Nifty, Sensex open higher on cooling inflation; auto and pharma shares in green

Mumbai (Maharashtra) [India], August 13 (ANI): Indian stock markets opened on a positive note on Wednesday as investor sentiment was lifted by further moderation in domestic inflation and strong global cues.

However, the focus remains on the upcoming meeting between US President Donald Trump and Russian President Vladimir Putin later this week.

The Nifty 50 index began the day at 24,579.60, up 92.20 points or 0.38 per cent, while the BSE Sensex opened at 80,525.05, gaining 289.46 points or 0.36 per cent.

According to Motilal Oswal Financial Services, India July inflation has eased to an 8-year low of 1.55 per cent from 2.1 per cent previous month, significantly below the RBI projection of 3.1 per cent, raising expectations of an interest rate cut by the central bank.

The brokerage further noted that on the domestic front, falling oil prices, now at a two-month low of USD 66 per barrel, and anticipation of a favourable outcome from the 15th August US-Russia talks on a Ukraine ceasefire are further boosting investor confidence.

In the broad market indices on NSE, all major indices gained in the opening session. Nifty 100 up by 0.29 per cent, Nifty Small Cap 100 gained 0.47 per cent, Nifty Midcap also surged by 0.61 per cent.

In the sectoral indices, Nifty Auto, Media, Metal, Pharma, PSU Banks all sector shares gained at the time of filing this report.

On the corporate front, major companies scheduled to announce their first-quarter results today include BPCL, Max Healthcare, Muthoot Finance, United Spirits, IRCTC, Jubilant Foodworks, Godrej Industries, and Deepak Nitrite.

Globally, US July inflation came in at 2.7 per cent, slightly below the 2.8 per cent forecast and unchanged from the previous month.

In commodities, Manav Modi, Analyst, Precious Metal Research at MOFS, said, Gold price is hovering around Rs. 1 lakh on the domestic front, supported by a weaker dollar amidst weak US inflation data which increased bets for an interest rate cut in Sept25, however a trade truce between US and China kept gains in check.

In other Asian markets, all major indices were in positive territory in Wednesday opening trade. Japan Nikkei 225 index rose 1.3 per cent, Singapore Straits Times gained more than 1 per cent, Hong Kong Hang Seng Index climbed 1.67 per cent, Taiwan Weighted Index was up 0.84 per cent, and South Korea KOSPI index advanced 0.59 per cent. (ANI)

Disclaimer: This news article is a direct feed from ANI and has not been edited by the News Nation team. The news agency is solely responsible for its content.