Auto, metal, energy stocks power Sensex 328 points higher; investors await US CPI data

The main focus this week is on Wednesday's actual US CPI figures, to see whether some upside surprises in the first quarter were a blip or worrying trend. Expectations suggest that core CPI will moderate from an annual rate of 3.8% in March to 3.6% for April.

From the pack, M&M, L&T, and were the top , rising 2.4% to 4%. NTPC, IndusInd Bank, Sun Pharma, and Reliance Industries also closed higher. On the flip side, TCS, Nestle India, Axis Bank, and ICICI Bank closed in the red.

On the sectoral front, Auto rose 1.8%, led by M&M, Hero MotoCorp, and TVS Motor. Metal also gained 2.8%, led by Adani Enterprises, SAIL, and Vedanta.

Among individual stocks, RVNL shares closed 7% higher after the firm received a letter of acceptance for an order worth Rs 239 crore from Southern Railway.

Shriram Finance ended 1.25% higher after it announced plans to sell its housing finance business to US private equity firm Warburg Pincus for $554.6 million.

Meanwhile, the market capitalisation of all listed companies on the BSE surged by Rs 4.6 lakh crore to Rs 402 lakh crore. The market breadth was skewed in favour of the bulls. About 2,689 stocks gained, 1,117 declined, and 117 remained unchanged on the BSE.

Experts View

"The domestic market has sustained its recovery path from recent lows, aided by a moderation in India’s CPI and favourable signals from its Asian peers. However, are cautious ahead of the upcoming U.S. CPI data, which is anticipated to show a slight increase from the previous month and could raise concerns about rate cut expectations. Volatility and range-bound trading are likely to persist in the near term, given the ongoing uncertainty surrounding the low turnout," said Vinod Nair, head of research at Geojit Financial Services.

Aditya Gaggar, director of Progressive Shares, said, "The next hurdle is placed at 22,330 while the support level is shifted higher at 22,100."