Sensex, Nifty Rebound After 6-Day Slump: Inflation, Value Buying Drive Gains

Mumbai, Feb 13 (PTI) Equity benchmark indices Sensex and Nifty rebounded in early trade on Thursday following a better-than-expected decline in CPI inflation in January and value-buying at lower levels.

The 30-share BSE benchmark Sensex climbed 214.08 points to 76,385.16 in early trade. The NSE Nifty rallied 69.8 points to 23,115.05.

From the 30-share blue-chip pack, Kotak Mahindra Bank, Mahindra & Mahindra, Zomato, Bajaj Finserv, Bajaj Finance and Tata Steel were the biggest gainers.

Tech Mahindra, Titan, IndusInd Bank, Tata Consultancy Services, HCL Tech and Tata Motors were among the laggards.

Continuing the downward trend, retail inflation fell to a five-month low of 4.31 per cent in January, mainly due to a decline in the prices of vegetables, eggs, and pulses.

"A positive domestic trigger is the better-than-expected decline in CPI inflation in January to 4.31 per cent from 5.22 per cent in December 2024. The decline in inflation trajectory justifies the MPC's rate cut this month and creates a favourable condition for another 25 bps rate cut in April. This augurs well for the stock market in general and rate-sensitives in particular," V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said.

In Asian markets, Seoul, Tokyo and Hong Kong were trading in the positive territory while Shanghai quoted lower.

US markets ended mostly lower on Wednesday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,969.30 crore on Wednesday, according to exchange data.

"From the market perspective, the elephant in the room continues to be the sustained FII selling which is showing no signs of abating," Vijayakumar added.

Global oil benchmark Brent crude declined 0.98 per cent to USD 74.44 a barrel.

The BSE benchmark, which had tanked more than 900 points intra-day on Wednesday, ended at 76,171.08, down by 122.52 points or 0.16 per cent. The Nifty dipped 26.55 points or 0.12 per cent to 23,045.25, marking its sixth straight day of losses.

Since February 4 till February 12, the BSE bellwether gauge had slumped 2,412.73 points or 3.07 per cent, while the Nifty tanked 694 points or 2.92 per cent.