MUMBAI: Benchmark indices Sensex and Nifty staged a recovery on Tuesday, snapping a four-day losing streak, as easing retail inflation and a rebound in global markets lifted investor sentiment.
The 30-share BSE Sensex rose 169.62 points or 0.22 per cent to close at 76,499.63, after touching an intraday high of 76,835.61, up 505.6 points or 0.66 per cent. The NSE Nifty gained 90.10 points or 0.39 per cent to settle at 23,176.05.
Despite the recovery, persistent foreign investor selling and rising global crude oil prices continued to exert pressure, limiting the gains, traders said. Over the previous four sessions, the Sensex had plunged 1,869.1 points or 2.39 per cent.
Adani leads gainers
Among the 30-share blue-chip pack, Adani Ports led the gainers with a surge of over 5 per cent. NTPC, Tata Steel, Bajaj Finserv, Zomato, Bajaj Finance, Tata Motors, State Bank of India, IndusInd Bank, and Maruti also posted notable gains.
On the other hand, Hindustan Unilever, Titan, Tata Consultancy Services, Infosys, and UltraTech Cement were among the laggards.HCL Technologies emerged as the biggest drag, slumping over 8 per cent after its December quarter earnings failed to meet investor expectations.
The IT major reported a 5.54 per cent increase in consolidated net profit to Rs 4,591 crore, alongside an optimistic revenue growth guidance. However, concerns over weak earnings guidance for Q4 weighed heavily on sentiment.
Retail inflation eased to a four-month low of 5.22 per cent in December, thanks to a decline in food prices, particularly vegetables, according to government data released on Monday. This provided some breathing room for the Reserve Bank of India to consider a potential rate cut in its upcoming monetary policy review.
A rebound in global markets and softer domestic CPI inflation provided much-needed respite to broader indices. While this may give the RBI some room in its next policy meeting, rising oil prices and higher 10-year bond yields will remain areas of concern, according to market experts.
The IT sector faced pressure due to subdued earnings guidance, while domestic sentiment is likely to pivot towards the ongoing earnings season and the forthcoming Union Budget.
In the broader market, all Adani group stocks were in strong demand, with Adani Power surging nearly 20 per cent.
Other Asian markets
Asian markets closed mostly higher, with Seoul, Shanghai, and Hong Kong posting gains, though Tokyo lagged. European markets traded in the green, while US markets ended on a mixed note on Monday.
Foreign institutional investors (FIIs) continued to offload equities, selling shares worth Rs 4,892.84 crore on Monday, as per exchange data. Meanwhile, global oil benchmark Brent crude rose 0.12 per cent to $81.11 per barrel.
On the inflation front, wholesale price inflation climbed to 2.37 per cent in December 2024, up from 1.89 per cent in November, driven by price increases in non-food articles, manufactured goods, and fuel and power.
The Sensex and Nifty had witnessed a sharp fall on Monday, with the Sensex dropping 1,048.90 points or 1.36 per cent to settle at 76,330.01 and the Nifty sliding 345.55 points or 1.47 per cent to close at 23,085.95.
