Mid-Session Overview: D-Street Mirrors Global Enthusiasm, PSU Banks Shine & More

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Mid-Session Overview: D-Street Mirrors Global Enthusiasm, PSU Banks Shine & More

By Malvika Gurung

Investing.com -- The domestic market opened higher on Thursday, in tandem with the Asian markets, tracking an overnight rally on Wall Street as the much-awaited US inflation print for July made a softer than expected landing.

Indian equity benchmark indices opened in green, with Nifty50 up 0.8% and Sensex trading 585.83 points or 1% higher at the time of writing, led majorly by gains across IT and banking stocks.

Inflation in the US, despite staying elevated, eased to 8.5% in July from a 40-year peak of 9.1% in June 2022, while the monthly rate was unchanged, mainly on account of a sharp drop in gasoline costs. The prices of retail gasoline plunged by 7.7% on an MoM basis.

Economists had estimated an annual rise of 8.7% in July, meaning that the lower-than-expected inflation figure was the first notable sign of relief for Americans, hinting that the Fed might adopt a less aggressive monetary tightening going forward.

The Street now sees a 43.5% probability of the central bank hiking rates by 75 bps in Sept, compared to a 68.5% chance earlier.

Back home, investors await the Indian consumer price inflation for July, scheduled to release on Friday.

Further, the trend of incessant sell-offs by foreign investors from Oct 2021-Jun to 2022 has reversed in July 2022, as FIIs turned net buyers in the month, the momentum continuing in August too. So far in the month, they have purchased equities worth $2.06 billion.

All sectoral indices under the Nifty basket, except Nifty FMCG , were trading in green, at the time of writing, led by Nifty PSU Bank , up 2.5% and Nifty IT . Nifty Bank surged 1.6%.

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