BIZ DESK
The Indian stock market ended in positive territory on Wednesday, buoyed by encouraging inflation data and strong buying in midcap counters. The Consumer Price Index (CPI) fell to an eight-year low of 1.55% in July, helped by a sharp decline in food prices—marking the lowest year-on-year retail inflation since June 2017.
The Sensex closed at 80,539.91, up 304 points (0.38%), after opening higher at 80,492.17 against the previous close of 80,235.59. Gains were largely supported by auto and metal stocks, with the index trading in a narrow range through the session. The Nifty 50 settled at 24,619.35, rising 131.95 points (0.54%).
Vinod Nair, Head of Research at Geojit Financial Services, said equities saw “broad-based optimism” as the record-low CPI spurred hopes for stronger discretionary spending, particularly in the auto and metal sectors. Midcaps outperformed, reflecting robust investor appetite. He added that global sentiment was aided by the extension of China’s tariff deadline and easing crude oil prices.
Despite lingering uncertainties over former US President Donald Trump’s trade policy stance and broader geopolitical risks, India’s growth-inflation mix remains favourable for FY26, though tariff-related changes could trigger a marginal downgrade. Market participants are also watching the planned Trump-Putin meeting on August 15 for potential geopolitical developments.
Among Sensex gainers were 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 ended in the red.
Sector-wise, most indices advanced. Nifty Financial Services gained 103 points (0.39%), Nifty Bank rose 137 points (0.25%), and Nifty Auto surged 266 points (1.12%). Nifty IT and Nifty FMCG ended flat. Broader markets also rallied, with the Nifty Next 50 up 398 points (0.60%), Nifty 100 adding 137 points (0.25%), Nifty Midcap 100 climbing 356 points (0.63%), and Nifty Smallcap 100 advancing 115 points (0.66%).
The rupee strengthened to 87.51, up 0.23 paise, supported by expectations of progress in the Russia-Ukraine conflict ahead of the Trump-Putin meeting. Jateen Trivedi of LKP Securities noted that softer CPI readings in both India and the US boosted sentiment. The rupee is expected to trade in the 87.25–88.00 range in the near term.
Market analysts say the combination of cooling inflation, resilient domestic demand, and improving global cues could sustain positive momentum in the near future, though eyes remain on geopolitical events and tariff policy shifts that could sway investor sentiment.