Equity benchmarks gained over 1 per cent on Wednesday. NSE Nifty was up by 1.14 per cent or 220.70 points to 19,664.25, while the BSE Sensex was at 65,658.06, up by 1.12 per cent or 724.19 points at 3.08 pm. A total of 3866 stocks were actively traded, 2292 advanced, while 1428 stocks declined, and 146 stocks remained unchanged on BSE. While 357 stocks hit a 52-week high, and 24 stocks hit a 52-week low.

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, “The October US inflation data is a game changer for the stock market. The 3.2 per cent October inflation print is lower than expected. More importantly, the mere 0.2 per cent MoM increase in core inflation is hugely positive. The takeaway from these numbers is that the Fed is done with rate hikes and the timeline for rate cuts in 2024 is likely to be advanced. The sharp recovery in US markets will be reflected in India, too. Short covering can add to the rally. FIIs are likely to turn buyers, lest they miss out on the rally in the best performing large economy in the world. Leading financials which were weighed down by FII selling will bounce back.”

He further added, “Decline in CPI inflation in India is also a favorable factor. Across sectors, a rally is likely. Financials, automobiles, real estate, cement and platform digital companies will attract investment from DIIs, HNIs and retail investors. The tug of war between FIIs and DIIs is clearly in favor of DIIs.”

Top gainers on the BSE include Gabriel, Sanduma, Starcement, Network18, Gateway with gains ranging from 7 per cent to 13 per cent. Top losers on the BSE include Rajeshexpo, Laopala, Religare, Carysil, Natcopharm with losses ranging from 3 per cent to 6 per cent.