OPEN APP
Home >Markets >Stock Markets >Indian stock markets at fresh record highs; HDFC twins, TCS, RIL drive gains

Indian stock markets at fresh record highs; HDFC twins, TCS, RIL drive gains

At 9.44am, the benchmark 30-share Sensex was 0.5% higher at 52,803 points, while the Nifty climbed 0.47% to 15,885 points. (Photo: Mint)Premium
At 9.44am, the benchmark 30-share Sensex was 0.5% higher at 52,803 points, while the Nifty climbed 0.47% to 15,885 points. (Photo: Mint)

  • India’s retail inflation raced to 6.3% in May, breaching the upper limit of the central bank’s inflation target for the first time in six months, and adding to the pressure on an economy whipped by the second wave of covid-19 infections

MUMBAI: Domestic benchmark indices scaled fresh peaks on Tuesday, buoyed by the trend in Asian peers and as foreign investors continue to pump in Indian equities. Most of the gains were driven by index heavyweights - HDFC twins, Infosys, TCS and Reliance Industries Ltd.

At 9.44am, the benchmark 30-share Sensex was 0.5% higher at 52,803 points, while the Nifty climbed 0.47% to 15,885 points.

Foreign institutional investors have bought nearly $1.4 billion worth in India equities in June so far.

"Markets are seeing buying interest on every dip and it shows that bulls are in control. Apart from the domestic factors viz. inflation and monsoon updates, the upcoming US Fed meet will be in focus. We reiterate our bullish yet cautious view on the market and suggest maintaining a stock-specific trading approach", said Ajit Mishra, VP - Research, Religare Broking.

India’s retail inflation raced to 6.3% in May, breaching the upper limit of the central bank’s inflation target for the first time in six months, and adding to the pressure on an economy whipped by the second wave of covid-19 infections.

The jump in retail inflation was primarily on account of rising food and fuel prices, according to government data released on Monday. However, the central bank is expected to look through the rising retail price pressure given the uncertainties surrounding economic recovery in Asia’s third-largest economy due to the impact of the pandemic on consumer sentiment and rural demand.

Wholesale price inflation also galloped to a fresh 11-year-high of 12.94% in May, having breached double digits in April on the back of rising global commodity prices. The Reserve Bank of India (RBI) targets the 2-6% range only for retail inflation and may overlook the Wholesale Price Index (WPI)-based inflation.

"Though the double digit wholesale inflation number does not have a bearing on the MPC’s policy action, this unexpected spike in retail inflation adds to the uncertainty in the forthcoming monetary policy announcement. Though RBI has been upright in giving higher weightage to growth over inflation, one may have to wait for the June 21 retail inflation number to assess the RBI’s next policy action", said Care rating.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!

Close
×
Edit Profile
My ReadsRedeem a Gift CardLogout