Investors now await the release of June retail inflation data later today. Analysts expect inflation to be likely to rise due to a sharp rise in tomato prices and a relative rise in soybean prices.
Post Date – 01:45 PM, Wednesday – July 12
New Delhi: Indian stock indexes edged higher on Wednesday, continuing their ongoing bull run.
Investors now await the release of June retail inflation data later today. Analysts expect inflation to be likely to rise due to a sharp rise in tomato prices and a relative rise in soybean prices.
The Sensex and Nifty both rose 0.2 percent, just off fresh highs hit last week. The Sensex is currently trading at 65,739, compared to its all-time high of 65,989.
NSE data showed 27 stocks in the Nifty 50 rose this morning, led by ONGC, HDFC, NTPC, HDFC Bank and Kotak Mahindra Bank.
Continued foreign inflows, a firming economic outlook and moderating inflation have underpinned the recent bull run in Indian stocks. However, some analysts noted that a further rebound from current levels is unlikely due to high valuations.
“Even after the recent market rally, market sentiment remains clearly bullish. Global and domestic signs are positive,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services.
Investors are also awaiting April-June earnings data from Indian companies, which are expected to start this week, for fresh clues about the overall domestic market going forward.
India’s retail inflation rate fell further to 4.25% in May, a two-year low. It was 4.7% in April and 5.7% in March. The continued tightening of monetary policy by the RBI since mid-2022 could be attributed to the sharp drop in Indian inflation data.
India’s retail inflation has been above the RBI’s 6% target for three consecutive quarters before falling back to the RBI’s comfort zone in November 2022.
Under the flexible inflation targeting framework, if inflation is based on the consumer price index, the RBI will be seen as failing to control price rises.
