Sensex rises over 180 points on easing inflation, firm cues
Equity benchmark Sensex surged over 180 points in early trade on Tuesday, as easing retail inflation triggered buying sentiment in the market. Besides, a firm trend on other Asian bourses also supported the uptick in domestic equities, brokers said. Sensex was trading 186.98 points or 0.32 percent higher at 58,364.74. Similarly, Nifty advanced 54.65 points or 0.31 percent to 17,409.95 in initial deals.
Who were the top gainers and losers?
Bajaj Finance was the top gainer in the Sensex pack, rising 0.78 percent, followed by Dr. Reddy's, Kotak Bank, ICICI Bank, IndusInd Bank, Sun Pharma, Axis Bank, and Reliance Industries. On the other hand, Infosys, Bajaj Auto, PowerGrid and UltraTech Cement were trading with losses.
Subdued prices of food items pulled down retail inflation
Subdued prices of food items like vegetables pulled down retail inflation for the third month in a row to 5.3 percent in August, within the RBI's comfort zone. The Consumer Price Index (CPI)-based retail inflation declined to 5.3 percent in August from 6.69 percent in August 2020, food inflation dipped at a faster pace to 3.11 percent from 9.05 percent in August 2020.
Sensex ended 0.22 percent lower in the previous session
In the previous session, the 30-share Sensex ended 127.31 points or 0.22 percent lower at 58,177.76. On the other hand, the broader NSE Nifty dipped 13.95 points or 0.08 percent to 17,355.30. Elsewhere in Asia, bourses in Shanghai (China), Seoul (South Korea), Tokyo as well as Hong Kong were trading with gains in the mid-session deals.
Brent crude was trading at $73.83 per barrel
Equities in the US ended largely in positive territory in the overnight session. Foreign institutional investors (FIIs) were the net buyers in the capital market as they purchased shares worth Rs. 1,419.31 crore on Monday, as per the provisional exchange data. Meanwhile, the international oil benchmark Brent crude rose 0.44 percent to $73.83 per barrel.