Markets end higher as inflation cools to 6-yr low in Apr; metal shares shine
Mumbai, May 14 (PTI): Equity benchmark indices Sensex and Nifty ended higher in a volatile trade on Wednesday due to selective buying support amid easing inflation and positive global cues.
Besides, heavy rush on metal and industrial counters and unabated foreign capital inflows supported the positive trend in the equity markets, traders said.
The 30-share BSE benchmark Sensex climbed 182.34 points or 0.22 per cent to settle at 81,330.56. The gauge hit a high of 81,691.87 and a low of 80,910.03.
As many as 2,857 stocks advanced while 1,121 declined and 147 remained unchanged on the BSE.
The NSE Nifty rose 88.55 points or 0.36 per cent to 24,666.90.
"Markets were choppy in intra-day trade but managed to end in the green on selective buying support as investors don't want to rush into equities after Monday's strong optimism. While foreign fund flows in the domestic market will be critical going ahead, investors are worried that the US-China settling tariff disputes could revive foreign investors' interest in Chinese markets again," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.
Tata Steel emerged as the biggest winner in the Sensex pack, rising 3.88 per cent, followed by Eternal, Tech Mahindra, Maruti, Mahindra & Mahindra, Infosys, IndusInd Bank, HCL Tech, Tata Consultancy Services and Bharti Airtel were the major gainers.
Telecom operator Bharti Airtel climbed nearly 1 per cent after it posted about a five-fold jump in consolidated net profit to Rs 11,022 crore in the March 2025 quarter, mainly due to the tariff hike impact and one-time gain on tax benefits.
However, Asian Paints, Tata Motors, Kotak Mahindra Bank, NTPC and Power Grid were among the laggards.
Tata Motors dipped over 1 per cent after the firm reported a 51 per cent decline in consolidated net profit to Rs 8,556 crore for the March quarter, hit by lower volumes and operating leverage.
"The session began on a positive note, supported by encouraging factors, such as easing retail inflation and stable global cues. However, the absence of sustained buying interest and a mixed performance among heavyweight stocks limited further gains as the day progressed," Ajit Mishra - SVP, Research, Religare Broking Ltd, said.
The BSE smallcap gauge jumped 1.63 per cent and the midcap index climbed 1.19 per cent.
Among sectoral indices, metal surged 2.46 per cent, industrials (1.73 per cent), realty (1.71 per cent), commodities (1.49 per cent), oil & gas (1.46 per cent), BSE Focused IT (1.38 per cent) and IT (1.37 per cent).
Bankex emerged as the only laggard.
"Nifty Metal was the top gainer, up 2.5 per cent, as easing trade tensions between the US and China lifted sentiment across metal stocks. Nifty IT also saw a 1.3 per cent uptick, rebounding after profit booking in the previous session. Defence stocks continued to witness momentum, backed by strong domestic demand and export optimism," Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services, said.
Meanwhile, retail inflation eased to a nearly six-year low of 3.16 per cent in April, mainly due to subdued prices of vegetables, fruits, pulses, and other protein-rich items, creating enough room for the Reserve Bank to go for another round of rate cuts in the June monetary policy review.
The Consumer Price Index (CPI) based inflation was 3.34 per cent in March and 4.83 per cent in April 2024. It was 3.15 per cent in July 2019.
Wholesale price inflation dropped to a 13-month low of 0.85 per cent in April, with softening in prices of food articles, fuel and manufactured products, with experts projecting further easing in the data for next month, government data showed on Wednesday.
In Asian markets, South Korea's Kospi, Shanghai's SSE Composite index and Hong Kong's Hang Seng settled higher, while Japan's Nikkei 225 index ended lower.
Markets in Europe were trading mostly lower. US markets ended mostly higher on Tuesday.
Global oil benchmark Brent crude declined 1.13 per cent to USD 65.88 a barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 476.86 crore on Tuesday, according to exchange data.
"Market optimism is gaining momentum, driven by a sharp decline in global and domestic risks...Currently, Midcaps are witnessing renewed interest, fuelled by marginal upgrades in recent earnings and the potential for a stronger rebound in FY26.
"Contributing factors include a consistent decline in inflation, rising disposable incomes, increased government spending, and falling interest rates. Meanwhile, a pause in global trade tensions is boosting sentiment in international markets, with metals gaining traction amid easing concerns over an economic slowdown," Vinod Nair, Head of Research, Geojit Investments Limited, said.
On Tuesday, the Sensex tanked 1,281.68 points or 1.55 per cent to settle at 81,148.22. The broader Nifty of NSE dropped 346.35 points or 1.39 per cent to 24,578.35.
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Inappropriate for MLAs seeking free IPL tickets, says D.K. Suresh
Bengaluru: Bengaluru Milk Union Ltd President D.K. Suresh on Monday said it is inappropriate for MLAs to seek free IPL tickets, adding that those interested in watching matches should pay for them personally.
Speaking to reporters near his residence in Sadashivanagar, he said, “IPL is a commercial tournament and does not represent the country. It is not right for public representatives to focus too much on such matters.”
Referring to the recent controversy during the RCB celebrations, he said, “let us find out who benefited the most from the statements made during the incident.” He also pointed out that BJP MLAs had received IPL tickets as well.
Responding to discussions about relocating the Chinnaswamy Stadium, Suresh said the government has already approved the construction of a new stadium at a location he had proposed.
“I had suggested building a stadium in Surya City and submitted a proposal for it. Bengaluru needs four stadiums in four directions to cater to its growing population and encourage youth participation in sports,” he said.
He noted that apart from Kanteerava Stadium, KSCA, and the Football Stadium, there are limited facilities in the city.
“When I was a Lok Sabha member, I had proposed allocating 100 acres in my constituency at Surya City. The land was later earmarked and the plan approved,” he added.
Suresh said he has discussed the project with Minister Zameer Ahmed Khan, Rajiv Gandhi Housing Corporation Chairman Shivalingegowda, and Anekal MLA Shivanna.
“The Cabinet has now approved the project, and a stadium will be developed on around 50–60 acres,” he said.
He further added that he has requested the Deputy Chief Minister to build another stadium at Shivarama Karanth Layout through the BDA, where 40 acres have been allocated. Plans are also being discussed to develop a well-equipped stadium in Bidadi.
Commending state government's recent bilingual policy move, Suresh said forcing children to learn three languages could affect their comprehension.
“It is a good decision to make two languages compulsory. Learning a third language should be left to the choice of students and parents,” he said.
Responding to criticism from BJP leaders, he said their tendency is to oppose every decision of the government.
“To please their central leadership, they take a pro-Hindi stance. Instead, they should advocate for the adoption of Kannada in all states,” he said.
When asked about the earlier three-language policy under Congress, he said, “the situation is different now. Today, the focus should be on quality learning. Kannada should remain the primary language, while students and parents can choose an additional language.”
