Sensex, Nifty Rally On WPI Data, Easing Oil Prices

(RTTNews) - Indian shares rose notably on Monday as oil prices stabilized after settling 7 percent higher on Friday, and data showed India's wholesale price inflation eased further in May to a 14-month low amid cheaper costs for primary articles, fuel, and power.

Oil prices fell today after no damage has been reported to Iran's energy infrastructure so far. Also, U.S. President Donald Trump has expressed optimism about brokering peace between Israel and Iran.

Speaking to reporters before departing for the G7 Summit in Canada, Trump said, "There's a good chance" that a ceasefire could be reached, although he added, "sometimes they have to fight it out."

On the data front, provisional data from the Ministry of Commerce and Industry revealed that India's wholesale price index, or WPI, rose 0.39 percent year-over-year in May, slower than the 0.85 percent increase in April. This was the lowest inflation rate since March 2024.

The easing of WPI aligns with the Reserve Bank of India's (RBI) ongoing efforts to manage price stability.

With retail inflation also declining to 2.82 percent in May, the lowest in over six years, the RBI may consider this favorable data in its future monetary policy decisions, market experts said.

The benchmark S&P/BSE Sensex jumped 677.55 points, or 0.84 percent, to 81,796.15 while the broader NSE Nifty index closed up 227.90 points, or 0.92 percent, at 24,946.50.

The broader market followed suit, with the midcap and small-cap indexes on the BSE rising 0.9 percent and 0.4 percent, respectively.

However, the market breadth was weak on the BSE, with 2,100 shares declining while 1,983 shares advanced and 170 shares closed unchanged.

Among the top gainers, HDFC Bank, Power Grid Corp, Maruti Suzuki India, Tata Steel, ITC, Asian Paints, Infosys, Kotak Mahindra Bank, Eternal, TCS, HCL Technologies, Tech Mahindra and UltraTech Cement rallied 1-2 percent.