The domestic stock market brushed aside the pessimism from the previous session as it saw increased buying activity in various sectors on Wednesday due to upbeat macroeconomic data. This happened despite global signals being subdued, with anticipation building around the US inflation figures, which will influence expectations regarding US interest rates.
Consumer Price Index (CPI)-based inflation, or retail inflation, moderated to 6.83 per cent in August from a 15-month high of 7.44 per cent in July, thanks to a fall in vegetable prices. Core inflation at 4.8 per cent remained in line with the market’s expectations.
Besides, India’s factory output rose to a five-month high of 5.7 per cent in July, up from 3.7 per cent in June, driven by strong growth in mining and power, official data released on Tuesday showed. The Index of Industrial Production (IIP), or factory output growth, stood at 2.2 per cent in July 2022, mainly due to a low base effect.
The US Consumer Price Index (CPI) report is due today. As per Reuters, core CPI is expected to cool to 4.3 per cent year-on-year in August but rising energy costs may keep headline inflation elevated at 3.6 per cent. The latest spike in crude oil prices to 10-month highs, too, may attract the Fed’s attention when it meets on September 19-20.
Sensex closed with a gain of 246 points, or 0.37 per cent, at 67,466.99 while the Nifty ended 77 points, or 0.38 per cent, higher at 20,070.
(More to come)
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Updated: 13 Sep 2023, 03:47 PM IST