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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Cong takes swipe at PM over India not being part of US-led 'Pax Silica' grouping
New Delh (PTI) The Congress on Saturday said it is perhaps not very surprising that India is not part of a US-led strategic initiative to build a secure silicon supply chain, given the "sharp downturn" in the Trump-Modi ties, and asserted that it would have been to "our advantage if we had been part of this group".
Congress general secretary in charge of communications Jairam Ramesh took a swipe at Prime Minister Narendra Modi, saying the news of India not being part of the group comes after the PM had enthusiastically posted on social media about a telephone call with his "once-upon-a-time good friend and a recipient of many hugs in Ahmedabad, Houston, and Washington DC".
In a lengthy post on X, Ramesh said, "According to some news reports, the US has excluded India from a nine-nation initiative it has launched to reduce Chinese control on high-tech supply chains. The agreement is called Pax Silica, clearly as a counter to Pax Sinica. The nations included (for the moment at least) are the US, Japan, the Republic of Korea, Singapore, the Netherlands, the United Kingdom, Israel, the United Arab Emirates, and Australia."
"Given the sharp downturn in the Trump-Modi ties since May 10th, 2025, it is perhaps not very surprising that India has not been included. Undoubtedly, it would have been to our advantage if we had been part of this group."
"This news comes a day after the PM had enthusiastically posted on his telephone call with his once-upon-a-time good friend and a recipient of many hugs in Ahmedabad, Houston, and Washington DC," the Congress leader asserted.
The new US-led strategic initiative, rooted in deep cooperation with trusted allies, has been launched to build a secure and innovation-driven silicon supply chain.
According to the US State Department, the initiative called 'Pax Silica' aims to reduce coercive dependencies, protect the materials and capabilities foundational to artificial intelligence (AI), and ensure aligned nations can develop and deploy transformative technologies at scale.
The initiative includes Japan, South Korea, Singapore, the Netherlands, the United Kingdom, Israel, the United Arab Emirates, and Australia. With the exception of India, all other QUAD countries -- Japan, Australia and the US -- are part of the new initiative.
New Delhi will host the India-AI Impact Summit 2026 on February 19-20, focusing on the principles of 'People, Planet, and Progress'. The summit, announced by Prime Minister Narendra Modi at the France AI Action Summit, will be the first-ever global AI summit hosted in the Global South.
Prime Minister Modi and US President Trump on Thursday discussed ways to sustain momentum in the bilateral economic partnership in a phone conversation amid signs of the two sides inching closer to firming up a much-awaited trade deal.
The phone call between the two leaders came on a day Indian and American negotiators concluded two-day talks on the proposed bilateral trade agreement that is expected to provide relief to India from the Trump administration's whopping 50 per cent tariffs on Indian goods.
In a social media post, Modi had described the conversation as "warm and engaging".
"We reviewed the progress in our bilateral relations and discussed regional and international developments. India and the US will continue to work together for global peace, stability and prosperity," Modi had said without making any reference to trade ties.
