Indian shares rallied on Friday to reach fresh record closing highs after data showed a pick-up in manufacturing activity in June and a dip in retail inflation in July.
India’s consumer price inflation slowed more than expected in July mainly due to softening food prices, preliminary data from the statistics ministry showed.
The consumer price index rose 5.59 percent year-on-year following a 6.26 percent increase in June. Economists had forecast 5.78 percent inflation.
Industrial production logged a double-digit growth in June due the low base of comparison, separate data showed.
Industrial production grew 13.6 percent on a yearly basis in June, but much slower than the revised 28.6 percent expansion posted in May. Economists had forecast an annual increase of 13.5 percent.
Global cues were also mostly positive amid optimism over a strong earnings season and signs that U.S. inflation may have peaked.
The benchmark 30-share BSE Sensex jumped as much as 593.31 points, or 1.08 percent, to settle at 55,437.29, while the broader NSE Nifty index ended at 16,529.10, up 164.70 points, or 1.01 percent, from its previous close.
Tata Steel, HCL Technologies, Larsen & Toubro, TCS and Tata Consumer Products jumped 2-4 percent in the Nifty pack, while Eicher Motors tumbled 2.7 percent after warning of chip shortages.
Britannia Industries, Cipla, Power Grid Corp and Dr Reddy’s Laboratories all fell over 1 percent.
Aurobindo Pharma slumped as much as 8 percent after delivering weak operational performance in the June quarter.
Market Analysis
Sensex, Nifty End At Fresh Record Highs
2021-08-13 10:40:10
