Indian Stock Market Surges as Weaker U.S. Inflation Signals Rate Cut Relief

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Indian equities rallied on Friday, reversing course after a four-day downturn. The upward momentum was fueled by easing technology sector concerns and renewed optimism surrounding potential Federal Reserve interest rate reductions, supported by softer inflation data from the U.S. that also carries implications for inflation in India through global economic dynamics.

Market Indices Climb on Positive Sentiment

The BSE Sensex advanced 476 points to reach 84,960, representing a 0.6 percent gain in opening trade. Meanwhile, the broader NSE Nifty index rose 148 points, or 0.6 percent, settling at 25,962. The positive shift marks a turnaround for Indian shares following recent consecutive losses, driven by improved investor confidence amid clearer macroeconomic signals.

Individual Stock Performers Highlight Sectoral Strength

Several stocks demonstrated notable strength across multiple sectors. Bajaj Holdings and Investment climbed 1 percent following news of its inclusion in the futures and options segment starting the January series. Steel stocks emerged as particular beneficiaries, with Tata Steel, Jindal Steel, and JSW Steel all advancing after the government introduced anti-dumping duties on specific steel imports originating from China.

Sammaan Capital surged 1.2 percent as the company announced clarification that current management faces no charges in an FIR filed by Delhi authorities. In the pharmaceutical space, Biocon gained 1.7 percent after obtaining an Establishment Inspection Report from the USFDA for its facility in New Jersey, signaling operational compliance and regulatory progress.

GPT Infraprojects soared 6 percent following the announcement of a major contract valued at Rs 1,804.48 crore from the Municipal Corporation of Greater Mumbai (MCGM). This significant order win boosted investor confidence in the infrastructure sector.

Mixed Signals Among Select Names

Not all stocks participated in the rally. Shriram Finance declined 1.5 percent amid fund raising announcements, while Dr Lal PathLabs fell 2 percent as it went ex-bonus. DCM Shriram Industries slipped 1.6 percent following a revised record date announcement for a scheme of arrangement, reflecting typical ex-date adjustments in valuations.

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