CHENNAI: Indian stock markets closed higher on Wednesday, rebounding after two days of losses, as upbeat global cues and easing domestic inflation lifted investor sentiment. The 30-share BSE Sensex rose 304.32 points, or 0.38%, to end at 80,539.91, after climbing as much as 448 points during the day to a high of 80,683.74. The NSE Nifty 50 gained 131.95 points, or 0.54%, to settle at 24,619.35.
Buying was seen across auto, metal and pharmaceutical stocks, while mid- and small-cap shares outperformed the benchmarks. Market breadth was positive, with more stocks advancing than declining on the BSE.
Sentiment improved after India’s retail inflation eased sharply to an eight-year low of 1.55% in July, helped by lower food prices. The reading came alongside a global market rally triggered by US inflation data that showed consumer prices rising less than expected, reinforcing hopes of interest rate cuts by the Federal Reserve.
Among the Sensex gainers were Bharat Electronics, Eternal, Mahindra & Mahindra, Kotak Mahindra Bank, Tata Motors and Power Grid. On the losing side, Adani Ports, ITC, UltraTech Cement and Titan ended in the red. The Nifty Bank index closed 0.25% higher.
The Indian rupee also strengthened, settling at around 87.49 per US dollar, supported by a weaker greenback and softer crude oil prices.