Sensex, Nifty Rally As Inflation Worries Ease

Indian shares opened higher on Wednesday as Chinese tech shares rebounded and falling oil and commodity prices helped ease inflation fears.

The benchmark S&P BSE Sensex climbed 772 points, or 1.4 percent, to 56,548 in early trade, while the broader NSE Nifty index was up 252 points, or 1.5 percent, at 16,915.

Bajaj FinServ, Grasim, Bajaj Finance, Axis Bank and IndusInd Bank jumped 3-4 percent while drug makers such as Sun Pharma and Cipla were down 0.7 percent and 1.6 percent, respectively.

PNB was little changed after reporting a borrowing fraud of over Rs. 2,000 crore.

DLF rallied 2.5 percent and Sobha added 1.1 percent as the government provided clarity in FDI policy for the real estate sector.

Zomato edged up slightly after it bought a 16.66 percent stake in Mukunda Foods Private Ltd, a food robotics company, for cash consideration of $5 million.

InterGlobe Aviation surged 4 percent. The budget airline has started flights between India and Thailand after a span of two years.

Hatsun Agro Product rose more than 1 percent. Chairman and Managing Director Chandramogan RG has purchased company’s shares worth nearly Rs 25 crore through an open market transaction.