Sensex ends 304 pts higher, Nifty above 24,600; BEL, Eternal rise 2% each on Fed rate-cut hopes and easing inflation.

Sensex Closes Higher, Nifty Tops 24,600 Amid Bullish Sentiment

India’s equity markets ended Wednesday’s session in the green, powered by strong buying in auto and financial sectors. The BSE Sensex surged 304.32 points (0.38%) to close at 80,565, while the NSE Nifty 50 gained 131.95 points (0.54%) to end at 24,619.35.

The rally was supported by global optimism after U.S. retail inflation softened in July, strengthening the case for a Federal Reserve interest rate cut in September. Domestically, signs of easing price pressures in India further lifted investor sentiment.

Market Movers of the Day

Auto and Financial Stocks Shine

Auto majors and top banks led the day’s rally, with heavyweight financials contributing significantly to the Sensex’s gains. Lower inflation expectations are generally positive for interest rate–sensitive sectors like autos and housing finance.

BEL and Eternal in Focus

Bharat Electronics Ltd (BEL) and Eternal Ltd were among the top gainers, each rising around 2%. BEL’s uptick comes amid renewed defense sector buying interest, while Eternal’s gains reflect strong quarterly results and robust order pipelines.

Global Cues Support Rally

Fed Rate Cut Speculation

The U.S. Consumer Price Index (CPI) for July came in below expectations, sparking optimism that the Federal Reserve will deliver a rate cut next month. Lower U.S. interest rates typically boost emerging market equities by encouraging foreign capital inflows.

Asian Markets Follow Suit

Most Asian indices closed higher, with Tokyo’s Nikkei 225 and Hong Kong’s Hang Seng posting solid gains, mirroring Wall Street’s overnight rally.

Domestic Economic Factors

Easing Price Pressures in India

India’s latest inflation data suggests moderation, with food prices stabilizing and fuel costs remaining steady. This reduces the risk of the Reserve Bank of India tightening policy in the near term.

Investor Confidence Rising

A combination of strong corporate earnings, stable rupee levels, and improving monsoon conditions has added to market optimism.

Technical View: Nifty & Sensex Levels to Watch

• Nifty Support: 24,500
• Nifty Resistance: 24,750
• Sensex Support: 80,300
• Sensex Resistance: 80,900

Analysts note that a sustained close above resistance could trigger another upward leg, while a fall below support might lead to short-term consolidation.

Expert Take

According to market strategist R. Mehta:

“The cooling U.S. inflation print has brought rate-cut hopes back on the table. For India, the easing of domestic price pressures is equally encouraging. Investors should remain selective, focusing on sectors that benefit from lower interest rates.”

FAQs

Q: Why did BEL shares rise today?
A: Renewed defense sector buying interest and healthy order book visibility boosted BEL’s stock.

Q: Will the Fed’s rate cut help Indian markets?
A: Yes. Lower U.S. rates often lead to higher foreign portfolio inflows into emerging markets like India.

Q: Which sectors may benefit most from lower inflation?
A: Autos, banks, and real estate are likely to see the most benefit.