Markets rebound in early trade after 6-day slump

Equity indices rebound on lower inflation, value-buying; Sensex up 214.08 points, Nifty rallies 69.8 points in early trade.

Equity benchmark indices Sensex and Nifty rebounded in early trade on Thursday (February 13, 2025) following a better-than-expected decline in CPI inflation in January and value-buying at lower levels.

The 30-share BSE benchmark Sensex climbed 214.08 points to 76,385.16 in early trade. The NSE Nifty rallied 69.8 points to 23,115.05.

From the 30-share blue-chip pack, Kotak Mahindra Bank, Mahindra & Mahindra, Zomato, Bajaj Finserv, Bajaj Finance and Tata Steel were the biggest gainers.

Tech Mahindra, Titan, IndusInd Bank, Tata Consultancy Services, HCL Tech and Tata Motors were among the laggards.

Continuing the downward trend, retail inflation fell to a five-month low of 4.31% in January, mainly due to a decline in the prices of vegetables, eggs, and pulses.

“A positive domestic trigger is the better-than-expected decline in CPI inflation in January to 4.31% from 5.22% in December 2024. The decline in inflation trajectory justifies the MPC’s rate cut this month and creates a favourable condition for another 25 bps rate cut in April. This augurs well for the stock market in general and rate-sensitives in particular,” V. K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said.

In Asian markets, Seoul, Tokyo and Hong Kong were trading in the positive territory while Shanghai quoted lower.