Cooling inflation lifts equity indices; metal stocks shine
Bombay Stock ExchangeIANS (File photo)

Cooling inflation lifts equity indices; metal stocks shine

Mumbai, August 16, 2021

Lower rate of inflation along with rising industrial production and healthy results buoyed India's key equity market indices on Monday.

Initially, markets opened on a flat note. Nevertheless, the two key indices -- NSE Nifty50 and S&P BSE Sensex -- gradually rose through the session to touch new record high levels.

Consequently, Nifty50 touched a record high of 16,589.40 points, while S&P BSE Sensex reached 55,680.75 points during the session.

Globally, Asian markets and European markets were subdued as weak Chinese economic data pointed to a Covid-induced slowdown while geopolitical turmoil prompted caution.

In domestic markets, Metals, Energy and Oil & Gas indices rose the most while Telecom, Consumer Durables and Auto indices fell the most.

On Monday, the S&P BSE Sensex closed the day's trade at 55,582.58, higher by 145.29 points or 0.26 per cent from its previous close.

Similarly, the NSE Nifty50 ended the day's trade at 16,563.05, higher by 33.95 points or 0.21 per cent from its previous close.

"India's wholesale inflation eased for the second straight month even as prices of manufactured products rose. Inflation as measured by the Wholesale Price Index stood at 11.16 per cent in July compared with 12.07 per cent in June 2021. The Nomura India Business Resumption Index rose above 100 for the first time since the pandemic began for the week ended August 15, 2021," HDFC Securities' Retail Research Head Deepak Jasani.

"The advance decline ratio continued to be weak. This along with lower-than-recent-average volumes on Aug 16 suggests that action is concentrated in a few scrips. Nifty could continue its gradual grind upwards, while the broader market continues to see rotational profit booking."

According to Vinod Nair, Head of Research at Geojit Financial Services: "Metals outshined other indices backed by better quarterly earnings. Due to weaker-than-expected Chinese economic data and surge in virus outbreaks, global indices traded under pressure."

IANS

Related Stories

No stories found.
NetIndian
www.netindian.in