Domestic stock markets started the last session of the week on a positive note despite weakness across Asian equities. The S&P BSE Sensex index climbed up as much as 0.54 per cent – or 207.06 points – to touch 38,517.55 in the first few minutes of trade, after opening with a gain of 0.32 per cent at 38,432.94. The broader NSE Nifty 50 benchmark rose to as high as 11,357.85, up 0.51 per cent – or 57.4 points – from its previous close, having begun the day at 11,353.30. (Track Sensex, Nifty Here)
At 9:21 am, the Sensex traded 190.46 points – or 0.50 per cent – higher at 38,500.95, while the Nifty was up 51.90 points – or 0.46 per cent – at 11,352.35.
Analysts say gains were limited as high inflation dashed hopes of further monetary easing in the near term.
Official data on Thursday showed consumer inflation – or the rate of increase in retail prices – worsened to 6.93 per cent in July from 6.23 per cent in the previous month, remaining above the RBI’s medium-term target for a 10th straight month.
Fearing a sharp rise in inflation, the Reserve Bank of India last week kept key interest rates on hold, after reducing the repo rate by a total of 115 basis points since February. The central bank RBI has set its medium term inflation target at 4 per cent.
Shares elsewhere in Asia dropped on Friday following lacklustre Chinese economic data, amid worries about a delay in US fiscal stimulus discouraged some investors from taking on risk.
MSCI’s broadest index of Asia-Pacific shares outside Japan was last seen trading 0.22 per cent lower, although Japan’s Nikkei 225 benchmark was up 0.11 per cent.
China’s Shanghai Composite, Hong Kong’s Hang Seng and South Korea’s KOSPI indices were down 0.35 per cent, 0.20 per cent and 1.38 per cent respectively at the time.
In China, a slower-than-expected rise in industrial production and a surprise fall in retail sales weighed on investor sentiment.
South Korean authorities reported the largest number of new coronavirus cases since March.
The E-Mini S&P 500 futures were up 0.14 per cent, indicating a positive start for US markets on Friday, a day after the S&P 500 benchmark index ended slightly lower after briefly trading above its record closing high level for a second day as doubts about US stimulus measures took hold.
On Thursday, the Sensex had ended 59.14 points – or 0.15 per cent – lower at 38,310.49 and the Nifty settled at 11,300.45, down 7.95 points – or 0.07 per cent – from its previous close.
