Sensex jumps over 400 points as markets recover with positive global signals

MUMBAI: national capital reference BSE sensex It recovered in more than 400 points in the first operations of Wednesday, led by the gains in the heavy weights of the Reliance Industries index (RIL), HDFC and Infosys, amid positive signals from other global markets. The decline in inflation figures, published after market hours on Tuesday, also helped the recovery of domestic market sentiment, operators said.

The BSE index of 30 shares rose 416 points or 1.13 percent to 37,374, while the largest NSE Nifty increased 113 points or 1.03 percent to 11,039.

In the previous session on Tuesday, sensex set 624 points, or 1.66 percent, lower at 36,958, and Nifty dropped 184 points, or 1.65 percent, to 10,926.

The main winners in the sensex package include Tata Steel, Vedanta, Yes Bank, Bajaj Finance, Hero MotoCorp, IndusInd Bank, Bajaj Auto, RIL and HDFC, with an increase of up to 3.72 percent.

While Sun Pharma, PowerGrid, Maruti, HCL Tech and Kotak Bank fell to 5.11 percent.

Experts said investor sentiment got a boost, as the decline in retail inflation left room for the Reserve Bank of India (RBI) to opt for another round of rate cuts in October.

Retail inflation decreased marginally to 3.15 percent in July, due to the decline in fuel prices, even when general food prices rose, government data showed Tuesday.

Retail inflation was 3.18% in June 2019, while it stood at 4.17% in the same period last year (July 2018).

General food inflation, measured in the Consumer Food Price Index (CFPI), increased to 2.36 percent during July since the revised print of 2.25 percent for June 2019, according to data published by the Central Statistics Office (CSO).

Meanwhile, foreign portfolio investors sold shares worth a net worth of Rs.638.28 million on Tuesday, while domestic institutional investors bought shares worth Rs 201.53 million, according to provisional data.

Elsewhere in Asia, Hang Seng, Kospi, Shanghai Composite Index and Nikkei recovered to raise their price in their respective morning sessions, after the president of the United States, Donald Trump, delayed tariffs on electronic products from China, which calmed investors' concerns about the US-China trade war.

The courses on Wall Street also ended significantly higher on Tuesday.

The positive market reaction following the Trump movement followed several sessions dominated by negative headlines, Dhananjay Sinha, head of institutional research at Emkay Global Financial Services in Mumbai, told Reuters.

On the front of the coin, the rupee appreciated 51 increases against its pre-trade close at 70.89 at the beginning of the session.

Brent crude futures, the global benchmark for oil, fell 1.09 percent to trade at $ 60.63 per barrel.