Soft US inflation data drives Sensex over 500 points higher, Nifty above 19,600
Federal Reserve may be done raising interest rates.
The BSE Sensex was trading 551 points or 0.85% higher at 65,485. Nifty50 was trading at 19,618, up 174 points or 0.90% at around 9.22 am.
Data showed US consumer prices were unchanged in October, and the annual rise in underlying inflation was the smallest in two years. In the 12 months through October, the CPI climbed 3.2% — below economists' estimates — after rising 3.7% in September.
Meanwhile, data showed India's annual retail inflation eased to a four-month low of 4.87% in October, below the Reserve Bank of India's upper tolerance band of 6% for a second consecutive month.
Wall Street brokerage Goldman Sachs also raised Indian shares to «overweight» from «marketweight» on Monday, citing strong economic fundamentals, earnings momentum and persistent domestic mutual fund inflows as key reasons for the upgrade.
From the Sensex stocks, Tech Mahindra, Tata Steel, JSW Steel, Infosys, and IndusInd Bank opened with gains, while only Power Grid, Sun Pharma, M&M, and Asian Paints opened with cuts.
Among individual stocks, RVNL rose nearly 4% after the company got a letter of acceptance from Central Railway for a project worth Rs 311 crore.
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