Nifty and Sensex Reach All-Time Highs Amid US Inflation Data - Times of India

Indian shares hit record highs as US inflation moderation boosts sentiment.

Indian shares reached new record highs on Thursday, following the positive momentum in Asian markets. The Nifty 50 index rose by 0.76% to reach an all-time high of 19,532.25, while the S&P BSE Sensex climbed 0.80% to a fresh record of 65,916.83. The rally extended to the broader markets, with smallcaps hitting a new 52-week high and midcaps reaching a record high.

The surge in Asian markets was driven by the MSCI Asia ex-Japan index, which jumped nearly 2% after Wall Street equities saw gains. This was largely due to the US consumer price index for June, which showed the smallest rise in over two years, easing concerns about inflation.

Despite concerns over domestic retail inflation in June and weakness in demand flagged by top IT firms Tata Consultancy Services and HCLTech, the moderation in US inflation outweighed these worries. Tata Consultancy Services saw a rise of over 1% after reporting higher-than-expected first-quarter profit, while HCLTech saw a decline of over 1% after posting weaker-than-expected earnings. Wipro, which reports later in the day, was up 0.22% and contributed to the overall gain of IT stocks.

Investors are closely watching the June quarter earnings as they will play a crucial role in determining the future course of the markets. Volume growth and margin expansion will be key indicators of the pricing power of companies.

In individual stock news, SpiceJet saw a jump of over 5% after its top shareholder, Ajay Singh, announced plans to infuse 5 billion rupees into the airline. On the other hand, Patanjali Foods experienced a decline of 5% after its largest shareholder revealed plans to sell up to 9% of its stake in the edible oil maker to meet the minimum public shareholding rules.

Overall, the record highs in Indian shares reflect the positive sentiment in Asian markets and the optimism surrounding the moderation in US inflation. Investors will continue to monitor earnings and market indicators for further insights into the future performance of the markets.