Sensex Leaps 645 Points: Global Market Rally Spurs Indian Equities and Strengthens Rupee

Amid a global market rally, Sensex and Nifty surged, propelled by positive US inflation data. The rupee gained 32 paise against the dollar, reaching 83.01. Key gainers included JSW Steel, Tech Mahindra, and Tata Steel, while Power Grid and Nestle lagged. Market optimism stems from expectations of an advanced 2024 rate cut.

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In a significant uptick, the Sensex and Nifty, key players in India's stock market, witnessed a remarkable surge due to the ongoing rally in global markets. The 30-share BSE Sensex soared by an impressive 645.08 points to 65,578.95 in early trade, with the Nifty climbing 209.8 points to 19,653.35.

Several heavyweight companies contributed to this surge, with JSW Steel, Tech Mahindra, Tata Steel, Infosys, Wipro, Tata Consultancy Services, HCL Technologies, and Axis Bank emerging as major gainers. On the flip side, Power Grid, Nestle, Mahindra & Mahindra, and Asian Paints faced declines.

This global optimism was not confined to India, as markets in Seoul, Tokyo, Shanghai, and Hong Kong also experienced positive trends. The impetus for this surge came from favorable US inflation data, revealing a 3.2% October inflation rate, lower than expected. Analysts like VK Vijayakumar see this as a game-changer, signaling the end of Fed rate hikes and potentially advancing the timeline for rate cuts in 2024.

The positive momentum extended to the oil market, where the global benchmark Brent crude rose by 0.33% to USD 82.74 per barrel. However, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,244.44 crore on Tuesday, according to exchange data.

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Simultaneously, the Indian rupee strengthened against the US dollar, appreciating by 32 paise to 83.01. This was attributed to the dollar's retreat after lower-than-expected US inflation. Forex traders noted a bullish opening for the rupee, buoyed by the weakening dollar and positive domestic equity trends.

In essence, the confluence of a global market rally, positive inflation data, and a strengthening rupee has created a buoyant atmosphere in India's financial landscape, with investors eagerly anticipating further positive developments.