Nifty, Sensex surge at open; IT sector leads amid global rally

Stock market news: Indian shares kicked off Thursday on a high note, with information technology stocks spearheading the rally, fueled by optimism from a broader surge in Asian equities. This uptick follows softer-than-anticipated US consumer inflation figures, which have bolstered expectations of multiple interest rate cuts in 2024.

As of 9:15 am, the benchmark NSE Nifty 50 surged by 0.53 per cent to reach 22,319.20 points, while the S&P BSE Sensex climbed by 0.48 per cent to 73,338.24 points.

All 13 major sectors witnessed gains, with notable strength observed in the US-rate sensitive information technology sector .NIFTYIT, which surged by 0.75 per cent. This sector's prominence is underscored by Indian IT companies' substantial revenue reliance on the United States.

The uptick in Indian equities mirrors the positive sentiment sweeping global markets following the release of US inflation data. The report revealed a milder-than-expected increase in consumer prices for April, signaling a resumption of the downward trend in inflation. This development propelled Wall Street to achieve record closing highs in the previous session.

(With Reuters inputs.)