As lowering inflation (CPI and WPI) statistics kept the bulls in control on Dalal Street on Tuesday, domestic benchmark indexes maintained their winning streak going for a third consecutive day.
India's consumer inflation eased to 6.71 per cent in July, aided by a slower increase in food and fuel prices. Inflation based on wholesale prices decreased to 13.93 percent in July, its lowest level in five months.
Even as Asian stocks struggled to find direction due to concerns over global growth in the wake of disappointing China data, the BSE Sensex surged 379 points to close at 59,842 and the NSE Nifty gained 127 points to 17,825. Maruti Suzuki, M&M, Asian Paints, HUL, Ultratech Cement, Tech M, and HDFC all saw gains of between 1 and 2.3 percent during today's trading. On the other hand, the only companies to experience a decline of up to 0.9 percent were Airtel, SBI, Bajaj Finance, and TCS.
Shares of Life Insurance Corporation of India (LIC) performed well by 2.5 percent after the nation's largest insurer announced a 20 percent increase in premium income for the June quarter on Friday.
After Mahindra & Mahindra and Volkswagen AG stated on Monday that their MEB collaboration would be expanding to speed up the electrification of the Indian car market, the company's shares soared as much as 3.12 percent to Rs 1,298.70, setting a new high.
The BSE MidCap and SmallCap indices concluded with 1 percent advances each in the larger markets. Sectorally, the Nifty Auto index increased by 2.5 percent, while the Nifty Realty index followed (up 2 per cent). The Nifty PSB index, however, had a 0.3 percent decrease.
On Monday, domestic markets were closed as the country celebrated its 75th anniversary of independence, and on Tuesday, the currency and debt markets were closed in observance of the "Parsi New Year."