Indian stocks ended higher in Wednesday’s trading session (August 13), with benchmark indices gaining over half a percent after a tamer-than-expected US inflation report raised the possibility that the Federal Reserve could cut interest rates next month.
Domestic inflation continued to soften for the ninth straight month, hitting the lowest level since 2017 at 1.55%, below analysts’ estimates. This also raised expectations of an interest rate cut by the central bank, lifting rate-sensitive stocks, including auto and realty counters.
The Nifty 50 finished 0.54% higher at 24,619, while the S&P BSE Sensex gained 0.38% to settle at 80,539. The broader markets outperformed, with the Nifty Midcap 100 and Nifty Smallcap 100 indices each closing with gains of over 0.60%.
Motilal Oswal noted in a recent report that falling oil prices, now at a two-month low of USD 66 per barrel, and optimism over a potential breakthrough in the August 15 US–Russia talks on a Ukraine ceasefire are further boosting investor confidence.
Meanwhile, soft US inflation data release reassured investors, who had feared that President Donald Trump’s broad tariff policies could push up prices in the US economy. The consumer price index rose 2.7% YoY in July.
Traders are now pricing in a more than 90% probability of a Fed rate cut in September, with rising odds for additional cuts in October and December.
Expectations of a Fed rate cut also pressured the US Dollar Index, which dropped below 98 against a basket of currencies on Wednesday.
The greenback came under further pressure after White House spokeswoman Karoline Leavitt said President Donald Trump is considering legal action against Fed Chair Jerome Powell over his handling of renovations at the central bank’s headquarters, comments that fueled concerns about the Fed’s independence.
18 Nifty 500 stocks close above 5%, with NMDC Steel leading the way
NMDC Steel emerged as the top gainer among Nifty 500 stocks, jumping 20% to ₹43, its biggest intraday rise in the last 18 months, after the company turned profitable in Q1, posting a net profit of ₹26 crore compared to a net loss of ₹547 crore in the same period last year.
JM Financial also reacted strongly to its June quarter numbers, gaining another 13.6% to ₹184.7, while EIH shares surged 12.5% to ₹410.
In addition, Apollo Hospitals and Bharat Dynamics gained 8.2% and 7.1%, respectively, on the back of their June quarter results. Supported by a steady rise in volumes, GlaxoSmithKline Pharmaceuticals surged 7% to ₹2,769, its biggest intraday spike since late May. Godrej Industries shares rose 6.8% to ₹1,169 following its Q1 performance.
Other stocks, including HBL Engineering, Clean Science & Technology, Honasa Consumer, BSE, Nykaa, Garden Reach Shipbuilders, Jyoti CNC Automation, Hindalco Industries, Schneider Electric, Techno Electric & Engineering, and Angel One, all ended the session with gains between 5% and 10.3%.
PG Electroplast, SJVN, and Suzlon Energy are among over a dozen stocks ending with losses of up to 6%
Among the top laggards, Coromandel International led the declines, slipping 6% to ₹2,257. The sell-off in PG Electroplast extended into its sixth straight session, with the stock losing another 5.7% to ₹486 apiece.
SJVN, Waaree Energies, and Valor Estate also saw sharp losses of up to 4.7%, while retail investors’ favorite, Suzlon Energy, fell 4.3% to ₹60.4 following the announcement of the company CFO’s exit.
Other Nifty 500 stocks, including Oil India, Poly Medicure, Jupiter Wagons, Reliance Power, Elgi Equipments, Bajaj Housing Finance, Bata India, Life Insurance Corporation, and Bharti Hexacom, recorded losses of up to 3%.
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