Indian shares open higher as moderate US inflation spurs global rally
The Nifty 50 (.NSEI), opens new tab rose 0.31% to 24,563.25 points and the BSE Sensex (.BSESN), opens new tab gained 0.26% to 80,427.58, as of 9:21 a.m. IST.
All 16 major sectors logged gains at the open. The broader small-caps (.NIFSMCP100), opens new tab and mid-caps (.NIFMDCP100), opens new tab gained about 0.5% each.
Asian markets rose, with the MSCI Asia ex-Japan index (.MIAPJ0000PUS), opens new tab gaining 0.9%. Wall Street closed higher after U.S. consumer prices increased marginally in July, up 0.2% month-on-month. The in-line print lifted September Fed rate cut odds to 94% from 86% a day earlier.
Lower U.S. rates typically boost the appeal of emerging market equities, including India, as yields on U.S. Treasuries fall.
India's retail inflation dropped to an eight-year low of 1.55% in July, slipping below the Reserve Bank of India's 2%-6% band, driven by falling food prices.
Among individual stocks, Apollo Hospitals (APLH.NS), opens new tab climbed 5.4% after posting a rise in June quarter profit, aided by higher patient volume.
Nykaa (FSNE.NS), opens new tab jumped 3.7% after reporting a two-fold rise in quarterly profit on beauty products demand.
($1 = 87.5800 Indian rupees)
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