Mumbai– Indian equities closed higher on Wednesday after consumer price index (CPI) data showed inflation had fallen to an eight-year low, sparking strong buying in midcap stocks.
India’s retail inflation rate, based on CPI, eased to 1.55% in July amid a drop in food prices — the lowest year-on-year figure since June 2017.
The Sensex ended the day at 80,539.91, up 304 points, or 0.38%. The 30-share index opened with a gap-up at 80,492.17 against the previous close of 80,235.59, buoyed by the encouraging inflation data. It remained range-bound during the session, with gains led by auto and metal stocks.
The Nifty closed at 24,619.35, up 131.95 points, or 0.54%.
“Indian equities saw broad-based optimism as CPI hit an eight-year low, lifting hopes for a revival in discretionary spending, particularly in autos and metals. Midcaps outperformed, showing strong investor appetite. Global sentiment improved on the extension of China’s tariff deadline and easing oil prices,” said Vinod Nair, Head of Research at Geojit Financial Services.
Despite global uncertainties, including U.S. President Donald Trump’s trade stance, India’s growth–inflation dynamics remain favorable for FY26, with only a marginal downgrade risk depending on tariff developments. Nair also noted investor attention on the upcoming Trump–Putin meeting scheduled for August 15.
Top gainers in the Sensex included BEL, Eternal, Mahindra & Mahindra, Kotak Bank, Power Grid, Tata Motors, Bharti Airtel, Bajaj Finance, Sun Pharma, Asian Paints, and Trent. ITC, Ultratech Cement, and Titan were among the few losers.
Most sectoral indices ended in positive territory. Nifty Financial Services rose 103 points (0.39%), Nifty Bank gained 137 points (0.25%), and Nifty Auto jumped 266 points (1.12%). Nifty IT and Nifty FMCG ended flat.
Broader indices also advanced, with midcaps drawing strong investor interest. Nifty Next 50 climbed 398 points (0.60%), Nifty 100 added 137 points (0.25%), Nifty Midcap 100 rose 356 points (0.63%), and Nifty Small Cap 100 gained 115 points (0.66%).
The rupee strengthened to 87.51, up 0.23 paise, on optimism over possible positive developments in the Russia–Ukraine conflict ahead of the August 15 Trump–Putin meeting, said Jateen Trivedi of LKP Securities. Softer CPI readings in both India and the U.S. also supported sentiment. Trivedi expects the rupee to trade in the 87.25–88.00 range. (Source: IANS)
