Indian Stocks Register Impressive Gains as Inflation Remains Low
Indian stock markets registered impressive gains as the global stock markets improved last week and Indian market was lagging behind. Indian stocks opened strong on Monday and selling pressure was witnessed at higher levels. However, towards the end of the trading session, markets registered strong gains and BSE Sensex closed with gains over 600 points. NSE Nifty closed above 10,400. Market analysts consider 10,300 as an important support level for Nifty and the market crossed this level during the early session.
Another positive news for the market was decline in retail inflation. As per reports, retail inflation eased at 4.4 percent in February as price of commodities remained under control. Indian economy became the fastest growing major economy across the world as per the latest GDP data released by Indian government. However, inflation was a major fear for economists as the Indian economy is already growing at a fast pace. Manufacturing activity has remained strong during the last quarter of year 2017.
Commenting on inflation numbers, Radhika Rao, India Economist at DBS Bank said, “Inflation has eased for the second consecutive month in February, raising downside risks to the RBI's projection for March 2018 quarter. Core inflation was relatively flat. This lowers pressure on the central bank to shift gears to a hawkish stance at the April review, with a similar tune likely to extend into June.”
Tata Motors, United Spirits and ITC were among major gainers in today’s session. Banking stocks remained under pressure after fresh reports of ED filing charge sheet against Andhra Bank official in Rs 5,000 crore scam.
The U.S. markets closed strong on Friday as positive jobs data offered boost to investor confidence. The U.S. market futures opened strong even on Monday, helping European stocks during closing session.