Indian shares up as soft US inflation data sparks global rally
The new logo of the Bombay Stock Exchange (BSE) building is seen in Mumbai, India, July 12, 2023. REUTERS/Francis Mascarenhas/File Photo Acquire Licensing Rights
BENGALURU, Nov 15 (Reuters) - Indian shares advanced on Wednesday mirroring global stocks after softer-than-expected U.S. inflation data strengthened hopes of an end to the rate-hiking cycle in the world's largest economy.
The NSE Nifty 50 index (.NSEI) was up 0.93% at 19,623.85 as of 9:54 a.m. IST, while the S&P BSE Sensex (.BSESN) rose 0.89% to 65,508.75.
All 13 major sectors logged gains. High weightage financials (.NIFTYFIN) gained 1%. Information technology (IT) stocks (.NIFTYIT) jumped 2%. IT companies earn a significant share of their revenue from the U.S.
Wall Street equities climbed higher overnight, while Asian markets jumped on Wednesday.
The rise came after data showed U.S. consumer price inflation (CPI) remained unchanged in October, the first such instance in more than a year, after a 0.4% rise in September. Economists polled by Reuters had forecast CPI to rise 0.1%.
The data spurred hopes of an end to the interest rate hikes by the U.S. Federal Reserve, sparking a rally in stock markets and pushing U.S. Treasury yields lower.
"US Treasury yields are headed lower, while dollar remains weak. An equity market rally is imminent," said Sanjiv Bhasin, director at IIFL Securities. Bhasin added falling yields after US inflation data meant that foreign flows will return to domestic markets.
Metals (.NIFTYMET) gained 2%, also aided by better-than-expected industrial output growth in China in October. China is the world's largest producer and consumer of metals.
Hindalco Industries (HALC.NS) jumped 5% and was the top Nifty 50 gainer.
Realty (.NIFTYREAL) gained about 2.6% each and hit a record high. The more domestic-focussed small- (.NIFSMCP100) and mid-caps (.NIFMDCP100) gained 1% and 0.7%, respectively.
Among individual stocks, Manappuram Finance surged 9%, extending its post-earnings rally for the second session. The gold financier topped second quarter profit estimates on high loan demand.
Reporting by Bharath Rajeswaran in Bengaluru; Editing by Varun H K and Nivedita Bhattacharjee
Our Standards: The Thomson Reuters Trust Principles.
What is the most important factor in making big money from stock investment?
There is no definitive answer to what is the most important factor in making big money from stock investment, as different investors may have different opinions, preferences, and strategies. However, some common factors that many experts and successful investors agree on are:Patience: Stock investin
What is the fundamental logic of making money from stocks?
The fundamental logic of making money from stocks is to buy low and sell high. This means that you want to buy stocks when they are undervalued by the market, and sell them when they are overvalued by the market. The difference between the selling price and the buying price is your profit.There are
Several General Laws of Stock Market Operation
There are several general laws that govern the operation of the stock market in the United States and other countries. These laws are designed to protect investors, ensure fair and efficient markets, and prevent fraud and manipulation. Some of the most important laws are:The Securities Act of 1933,
How to sell stocks at their highest price
Selling stocks at their highest price is a common goal for many investors and traders, but it is not always easy to achieve. There are many factors that can affect the price of a stock, such as market conditions, company performance, industry trends, news events, and investor sentiment. Therefore, i