Ahead of the release of crucial US inflation data later in the day, the Indian benchmark equity index Nifty50 closed at a record high on Wednesday, driven by gains in banking, energy, and IT stocks.

The 30-share BSE benchmark Sensex surged 354 points or 0.47% to settle at 75,038. The broader NSE Nifty gained 111 points or 0.49% to end at 22,754.

Among the Sensex stocks, ITC, Kotak Bank, Bharti Airtel, SBI, and Aisan Paints closed with gains, while Maruti Suzuki, HDFC Bank, L&T, and M&M closed with cuts.

The Nifty metals index rose 1.2%, hitting a record high for the second straight session on expectations of a demand rebound on the back of strong manufacturing data from the US and China.

Vedanta led gains in the index, jumping 6.8% after CLSA double-upgraded the stock to “buy” from “underperform” and raised the target price to Rs 390.

US interest rate-sensitive Nifty IT rose 0.6%, led by Tech Mahindra, TCS, and Infosys.Recent strong economic data have dampened hopes of a US rate cut in June, and hotter-than-expected inflation will likely add to worries of a further delay.Meanwhile, the market capitalisation of all listed companies on BSE surged by Rs 2.26 lakh crore to Rs 402.18 lakh crore. The market breadth was skewed in the favour of the bulls. About 1,960 stocks gained, 1,869 declined, and 104 remained unchanged on the BSE.

Expert Views

“Investor attention remains fixated on the impending release of the FOMC minutes and US inflation data later today. Following the release of strong US job data, market sentiments are inclined towards anticipation of spike in inflation, thereby reducing the likelihood of a near-term rate cut,” said Vinod Nair, head of research, Geojit Financial Services.

Additionally, Fitch’s recent downgrade of China’s credit rating could potentially reverberate through the global economy, warranting a caution, he said.

Aditya Gaggar, director of Progressive Shares, said, “The overall chart setup of Nifty50 is strong and indicates an extension of the current up-move to achieve a psychological target of 23,000 with the downside being protected at 22,530.”

Global Markets

World stocks traded higher and bonds and currencies steadied on Wednesday, largely unfazed by ratings agency Fitch downgrading its China outlook, while traders awaited crucial US inflation data due later in the day.

Europe’s broad STOXX 600 index rose 0.6% recovering after a drop the day before and heading back towards a record high, while MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.7%.

Oil Rises

Oil prices rose on Wednesday after two days of losses as a deadlock in Gaza ceasefire talks renewed uncertainty about the security of supply from the Middle East and offset a bigger-than-expected build in US crude inventories.

Brent crude futures were up 30 cents, or 0.3%, at $89.72 per barrel, while U.S. West Texas Intermediate (WTI) crude futures rose 29 cents, or 0.3%, to $85.52.

Rupee Strengthens

The Indian rupee closed higher on Wednesday, aided by likely inflows and lower US bond yields, while state-run banks’ dollar appetite constrained the local currency’s gains after it touched the strongest level in nearly three weeks.

The rupee closed at 83.1850 against the US dollar, up 0.16%, compared with its previous close at 83.3150. The currency rose to an intra-day high of 83.16, its strongest level since March 21.

(With inputs from agencies)


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