- Indian markets closed higher; Sensex and Nifty gained.
- Global markets gained due to softening US inflation data.
- Brent crude held above $85; FIIs sold equities.
The Indian benchmark indices gained on Wednesday as the Sensex rose over 130 points to close at 77,185 and the Nifty inched up 22 points to close trade at 24,074 at 3:30 PM.
Previously, during the early morning session, the Sensex Sensex jumped 553 points to 77,603.57 in early trade and the Nifty went up by 148.15 points to 24,198.40 at 9:15 AM.
Asian Markets
Asian equity markets traded mostly higher on Wednesday after softer-than-expected US inflation data strengthened expectations of a more accommodative Federal Reserve policy.
South Korea’s Kospi surged 7.66 per cent. Japan’s Nikkei 225 and Hong Kong’s Hang Seng also traded in positive territory, while China’s Shanghai SSE Composite index quoted lower.
Wall Street Ends Higher
US markets closed with gains on Tuesday.
“Global cues turned relatively supportive overnight. US equities ended higher, with the S&P 500 gaining 0.38 per cent and the Nasdaq advancing 0.90 per cent, after softer-than-expected June CPI data reinforced hopes of a more accommodative Federal Reserve policy,” Rajesh Palviya, Head of Research, Axis Direct, said.
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Brent Crude Holds Above $85
Palviya said Brent crude moved towards USD 85 per barrel after US President Donald Trump withdrew the proposed 20 per cent transit fee through the Strait of Hormuz.
Brent crude, the global oil benchmark, was trading 1 per cent higher at USD 85.63 per barrel.
FIIs Continue Selling
Foreign Institutional Investors (FIIs) sold equities worth Rs 739.69 crore on Tuesday, according to exchange data.
US Inflation Supports Global Sentiment
Providing support to global markets, US consumer price inflation eased to 3.5 per cent in June, below market expectations of 3.8 per cent, indicating that underlying price pressures may be moderating.
“The softer-than-expected inflation reading has reinforced expectations that the Federal Reserve could adopt a less aggressive monetary policy stance in the coming months, offering some relief to global risk assets despite the heightened geopolitical uncertainty,” Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.
Sensex, Nifty End Lower
On Tuesday, the BSE Sensex declined 561.46 points, or 0.72 per cent, to close at 77,054.94.
The NSE Nifty fell 158.95 points, or 0.66 per cent, to settle at 24,052.05.
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