Sensex back above 59k as slower US inflation lifts global markets

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MUMBAI: A fall in the US inflation rate, although marginally, led to a rally on Wall Street on Wednesday night which also lifted investor sentiment on Dalal Street on Thursday.
As a result, the sensex rallied over 1% intraday to nearly 59. 5k in early trades and closed 515 points up at 59,333 with HDFC and HDFC Bank leading. The close for the day was afour-month high for the index. Strong buying in some of the large Asian markets also helped the domestic rally, market players said.
A lower-than-expected consumer inflation reading in the US for July at 8. 5% — compared to 9. 1% in June — along with expectations of 8. 7% by economists led to the rally, traders said. However, some pointed out that the rally may not last for long.
This is because the lower inflation number was on the back of a sharp slide in oil prices in the past few weeks, while food prices remain elevated….

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