FX.co ★ Sensex, Nifty Reach New Highs; ONGC Rallies Over 5%

Indian equities achieved modest gains on Monday, closing at record highs, driven by robust performance in oil & gas stocks as well as PSU banks.

Investors appeared largely unperturbed by data revealing that India's wholesale price inflation had continued its upward trajectory in June, hitting its highest level in nearly 18 months. This surge was largely due to increased prices across a broad spectrum of categories.

Provisional data from the Ministry of Commerce and Industry indicated that the Wholesale Price Index (WPI) rose by 3.36% year-over-year in June, exceeding the 2.61% increase recorded in May. This marks the highest inflation rate since February 2023, when the index had climbed by 3.85%.

The broader NSE Nifty index surpassed the 24,600 mark for the first time, ultimately closing higher by 84 points, or 0.35%, at 24,587. The 30-share S&P BSE Sensex concluded the session with a gain of 145 points, or 0.18%, at 80,665.

Prominent among the gainers, ONGC soared 5.2%, while Bajaj Auto, SBI, Shriram Finance, and SBI Life each appreciated by around 3%. Conversely, Tata Steel, Grasim, Asian Paints, and LTIMindTree saw declines of 1-2%.

Tyre manufacturer MRF experienced a 1.2% rise following reports of impending price hikes set for July 18. Ceat surged 4.2%, and JK Tyre jumped 6.8%. Vodafone Idea advanced 3.7% after the Supreme Court agreed to hear its plea in the AGR case. Aurobindo Pharma also rose 3.7% on news of a share buyback.

Global market signals were mixed. A shooting at former U.S. President Donald Trump's election rally on Saturday increased his chances of reclaiming the White House. This speculation led to a rise in both the dollar and bond yields. Meanwhile, gold prices remained subdued, and oil prices saw a slight uptick due to ongoing volatility in the Middle East and expectations of potential Fed rate cuts.