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Sensex holds rebound as India’s WPI inflation cools down


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  • Sensex keeps its rebound intact on Thursday after Wednesday’s bloodbath.
  • India’s Sensex lost over 1.0% on Wednesday, undermined by small and midcap indices.
  • Attention now shifts toward India’s WPI data, US Retail Sales and PPI inflation data.

The Sensex 30, one of India’s key benchmark indices, is clinging to recovery gains on Thursday, having ended Wednesday over one percent on the back of heavy bleeding in small and midcap indices.

Cooling Wholesale Price Index (WPI) inflation in India fanned bets of early interest rate cuts by the Reserve Bank of India (RBI), lifting the Indian index.

At the time of writing, the Bombay Stock Exchange (BSE) Sensex 30 is rising 0.43% on the day at 73,076.94.

Stock market news

  • The top performers on Sensex are Larsen & Toubro, Infosys, HCL Tech, Bharti Airtel and Mahindra & Mahindra. Meanwhile, the top losers include Axis Bank, Tata  Motors, JSW Steel, SBI Bank and Tata Steel.
  • Data on Thursday showed that India’s February WPI inflation eased to 0.20% versus 0.27% in January, hitting a four-month low.
  • India’s rising valuations prompted investors and foreign companies to sell their holdings on Wednesday.
  • According to a risk disclosure format that the Association of Mutual Funds in India (Amfi) has shared with fund houses, Mutual Funds (MFs) will have to disclose the total investment of the top 10 investors in two active schemes.
  • In adherence to the Amfi regulation, MFs are poised to release their inaugural stress test reports later this week but this will necessitate additional disclosures. 
  • Shares of Powergrid and NTPC tanked nearly 7.0% on Wednesday.
  • Shares of ITC rebounded amid an expected 3.50% stake sale by British American Tobacco (BAT) in the company on Wednesday.
  • Indian government allowed the Reserve Bank of India (RBI) to import gold without paying import levies.
  • The US stock markets failed to sustain the previous rebound and closed mixed on Wednesday, as investors now look for more US economic data after the US Consumer Price Index (CPI) report failed to have any impact on the June Fed rate cut expectations.
  • The US CPI rose 3.2%  in February from a year ago, beating the market forecast of 3.1%. The monthly CPI increased 0.4% in the same period. Core CPI, which excludes food and energy prices, increased 0.4% from the last month and 3.8% over the year.
  • Markets continue to price in about a 70% chance that the Fed could begin easing rates in June, according to the CME FedWatch Tool.
  • Attention now turns toward the US Retail Sales and Producer Price Index (PPI) data due later on Thursday.

Nifty 50 FAQs

The Nifty 50, or simply Nifty, is the most commonly followed stock index in India. It was launched in 1996 by the National Stock Exchange of India (NSE). It plots the weighted average share price of 50 of the largest Indian corporations, offering investors comprehensive exposure to 13 sectors of the economy. Each corporation’s weighting is based on its “free-float capitalization”, or the value of all its shares readily available for trading.

The Nifty is a composite so its value is dependent on the performance of the companies that make up the index, as revealed in their quarterly and annual results. Another factor is government policies, such as when in 2016 the government decided to demonetize 500 and 1000 Rupee banknotes. This led to a temporary cash shortage which negatively impacted the Nifty. The level of interest rates set by the Reserve Bank of India is a further factor as it determines the cost of borrowing. Climate change, pandemics and natural disasters are also drivers.

The Nifty 50 was launched on April 22, 1996 at a base level of 1,000. Its highest recorded level to date is 22,097 achieved on January 15, 2024 (this is being written in Feb 2024). The index first closed above the 10,000 level on October 17, 2017. The Nifty recorded its biggest daily decline on March 23, 2020 during the Covid pandemic, when it fell 1,125 points or 12.37%. The Nifty’s biggest gain in a single day occurred on May 18, 2009, when it rose 651 points after the results of the Indian elections.

Major corporations in the Nifty 50 include HDFC Bank, Reliance Industries, ICICI Bank, Tata Consultancy Services, Larsen and Toubro, ITC Ltd, Housing Development Finance Corporation Ltd and Kotak Mahendra Bank.