Easing US inflation sends stock markets soaring

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By S Jha

New Delhi, November 15: Even while the foreign and domestic institutional investors were on marginal sellers, Sensex and Nifty soared to the new high following a spike on the Dow Jones Futures in the late afternoon following data that suggested further easing of inflation in the US. While Fed stays hawkish to keep pushing the rates higher, hopes brightened that there could be a rethink amid data showing that inflation may have peaked.

The retail inflation in India too had shown to come down to 6.77 per cent in October, which is still higher to the comfort zone of the Reserve Bank of India. Inflation in India has been above six per cent for three consecutive quarters now, which would necessitate the RBI to explain reasons and actions to the government as per the provision of the monetary policy.

The Bank Nifty led the rally on the stock market on Tuesday. ICICI Bank and SBI gained strength, who were also joined by Axis Bank, while heavyweight HDFC Bank stayed in the consolidation mode. With bank Nifty lifting the stock market strongly, Sensex and Nifty also gave up the hesitation and joined the rally, helped by strength in Powergrid, Hero MotoCorps, Bajaj Auto, Bharti Airtel, while cement stocks showed demand among the buyers.

Both Nifty and Banknifty are trading higher, after spending two days in consolidation, which is a sign of the indices gaining strength at the higher levels. Action shifted in the mid and small cap, as a number of stocks trended amid market strength. The likes of Alkali, Linc, Gabriel, Nippon Battery, Best Agro, Hitachi, Gujarat Gas, Surya Roshini, Unichem Lab closed higher on Tuesday with strong buyer interests. The spread of the gaining scrips seemed across the sectors, which again is a sign of bullish spread in the equity space amid retailers returning back to the market.

Coal India was battered by six per cent, which led the pack of the losers. The IPO sensation Nykka was also hammered down by over nine per cent. Info Edge after making a strong gain on Monday gave up more than four per cent on Tuesday. Paytm, which has significantly lost the market share in the wallet business to Google Pay and Phone pe, lost another close to two per cent, while trading at Rs 626, which is almost one-third of the IPO price.