Nifty 50 Gains 1.50% as Inflation Eases and Monsoon Arrives

India’s benchmark Nifty 50 index ended 1.50% higher, buoyed by softer-than-expected inflation data and optimism surrounding the timely arrival of the southwest monsoon. The rally was supported by gains in IT and metal stocks, while energy shares provided crucial late-session momentum.  

 

Market Drivers and Sector Performance  

- Wholesale inflation (WPI) eased to 0.85% in April, down from 2.05% in March, boosting investor sentiment  

- Retail inflation fell to 3.16%, reinforcing hopes of a stable interest rate environment  

- IT and metal stocks led the gains, while private banking shares saw some selling pressure before a late recovery  

 

Broader Market Trends and Economic Outlook  

- The Sensex advanced 182 points to close at 81,330, while the Nifty settled at 24,666  

- Midcap and smallcap indices outperformed, rising 1.19% and 1.63% respectively  

- The India VIX, a measure of market volatility, dropped 5.35% to 17.23, signaling reduced uncertainty  

 

With inflation cooling and monsoon progress on track, market analysts anticipate continued stability, though global cues will remain a key factor in shaping investor sentiment.  

 

Sources: Business Standard, India Today, CNBC TV18, Economic Times