Indian equities experienced a noteworthy resurgence, propelling the BSE Sensex and NSE Nifty 50 to four-week highs in response to encouraging U.S. inflation data, suggesting a potential moderation in the Federal Reserve’s rate hikes. Following a market closure on Tuesday for Diwali Pratipada, the Sensex surged to 65,510.19, and the Nifty reached 19,626.40.
This broad-based recovery encompassed gains across all sectors, with realty and information technology stocks leading the way. The positive trend mirrored bullish movements in Asian markets, as the Sensex opened 598 points higher at 65,532.45, and the Nifty rose by 182.91 points to 19,626.
In a significant development during MSCI Inc.’s November review, nine Indian companies secured a spot in its Emerging Markets Index. Notable additions to the large-cap index included Tata Motors (NYSE:TTM) A and IndusInd Bank, while the mid-cap index welcomed new entrants One 97 Communications (parent of Paytm) and Tata Communications. APL Apollo Tubes, Persistent Systems, and Suzlon Energy also saw upgrades within the index.
Reflecting investor confidence in mid-sized enterprises, the S&P BSE MidCap Index climbed by 0.78%. However, the S&P BSE SmallCap Index experienced a decline of 1.08%. Out of the 30 scrips tracked by the BSE Sensex, 26 advanced while four declined.
The unexpected slowdown in U.S. inflation served as a catalyst for market sentiment, sparking a rally in Asian stocks and currencies. Investors, anticipating a potential deceleration in the Federal Reserve’s aggressive interest rate hikes, contributed to the positive mood in global markets. This favorable backdrop played a pivotal role in propelling Indian stocks to thrive in today’s trading session.