Sensex rallies on lower US inflation data

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, he added.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 said.Decline in CPI inflation in India is also a favourable 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 favour of DIIs, he added.BSE Sensex is up 593 points at 65,527 points on Wednesday. IT heavyweights are up with Tech Mahindra up three per cent, Wipro and Infosys up almost two per cent.--IANSbiz/san/khz

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