Markets Surge as Inflation Drops to 6-Year Lows: Nifty Hits 24,700, Sensex Soars 500 Points, Tata Steel Gains 4.5%

In a vibrant start to the trading day, Indian stock indices experienced a notable uptick, with the Sensex soaring by 522.24 points or 0.64%, reaching 81,670.46, while the Nifty gained 181.90 points or 0.74%, landing at 24,760.25. This rise was primarily driven by robust performances from several key players, including Tata Steel, which led the charge with a substantial 4.68% increase. Other notable gainers included Bharti Airtel and Tech Mahindra, rising 1.55% and 1.54%, respectively.

Indian Markets React to Soft Inflation Data

The surge in the Indian equity markets on Wednesday can be attributed to April’s inflation data, which fell to a six-year low, exceeding market expectations. As a result, the NSE Nifty 50 saw an increase of 167 points, or 0.68%, climbing to 24,745, while the BSE Sensex gained 478 points, or 0.60%, now at 81,641.

Opening Highlights:
- The NSE Nifty 50 opened 57 points or 0.23% higher at 24,636.
- The BSE Sensex commenced its day with a 222-point increase, or 0.27%, at 81,370.
- Bank Nifty also saw a positive opening, rising 141 points or 0.26% to 55,082.

Market Insights and Predictions

According to Anand James, Chief Market Strategist at Geojit Investments, the Nifty 50 needed to maintain levels around 24,550-24,590 to prevent further declines. Although the market showed signs of weakness, he anticipates a potential bounce back, emphasizing that any upward movement would need to surpass 24,660-24,726 to sustain momentum. Without this breakthrough, the index may retreat to 24,424-24,509.

James further noted that early dips might occur, yet holding above 24,810 could reignite an upward trend, targeting levels between 25,075-25,126. He described the likelihood of drastic moves in either direction as low.

Key Movers in the Market

The early session highlighted several top performers:

Leading Gainers:
- Tata Steel
- Shriram Finance
- Bharti Airtel
- Trent
- Hindalco
Stocks Experiencing Declines:
- Hero MotoCorp
- Cipla
- Tata Motors
- Asian Paints
- Eicher Motors

Global Market Landscape

While Indian markets enjoyed a bullish trend, global indices presented a mixed picture. The Nikkei 225 in Japan dropped by 0.60%, while other Asian markets, including the Kospi in South Korea and the Shanghai Composite in China, showed positive signs. Notably, US markets closed higher, reflecting easing inflation concerns.

Crude Oil Prices Decline

Crude oil prices experienced a decline today as the US and China reached an agreement to reduce reciprocal tariffs. WTI Crude prices fell by 0.40%, settling at $63.42 a barrel, while Brent Crude decreased by 0.41% to $66.36 a barrel.

Investors Eye Upcoming Earnings Reports

As the trading day progresses, investors are closely monitoring a series of quarterly earnings reports set to be released today. Key companies expected to announce their financial results include: