Market wrap: Sensex, Nifty end higher for second consecutive session; investors richer by nearly ₹2 lakh crore in a day

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Nifty ended higher on Tuesday amid broadly positive global cues ahead of the US inflation data which will influence the next move of the Federal Reserve on rate hikes. The Federal Reserve might have to increase interest rates to bring down inflation, but many Fed officials think that the current phase of monetary policy tightening is nearing its end.  "The Federal Reserve will likely need to raise interest rates further to bring down inflation that is still too high, but the end to its current monetary policy tightening cycle is getting close, several US central bank officials said on Monday," reported Reuters. Investors are awaiting US inflation data on Wednesday.

As per a poll conducted by Reuters, economists expect the consumer price index to have risen by 3.1 per cent in June, after May's 4 per cent increase. "This would be the lowest reading since March 2021. The core rate is expected to have dropped for a third month to 5 per cent from 5.3 per cent, but this is still more than double the Fed's 2 per cent target," reported Reuters.

Sensex opened 254 points higher at 65,598.65 against the previous close of 65,344.17 and remained in the green through the session, rising 526 points to hit the intraday high of 65,870.59. The index finally closed 274 points, or 0.42 per cent, higher at 65,617.84 while the Nifty ended the day at 19,439.40, up 84 points, or 0.43 per cent. Heavyweight stocks such as Reliance Industries, Infosys and ITC were the top contributors to the gains in the Sensex index.

Mid and smallcaps outperformed the benchmark index. The BSE Midcap index ended with a gain of 0.97 per cent while the Smallcap index rose 0.82 per cent. The BSE Smallcap index hit its fresh all-time high of 33,361.88 in intraday