In the barometer index, the S&P BSE Sensex advanced 304.32 points or 0.38% to 80,539.91. The Nifty 50 index jumped 131.95 points or 0.54% to 24,619.35.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.56% and the S&P BSE Small-Cap index rose 0.58%. The market breadth was positive.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, shed 0.75% to 12.14.

Among the sectoral indices, the Nifty Healthcare services index (up 2.13%), the Nifty Pharma index (up 1.73%) and the Nifty Metal index (up 1.26%) outperformed the Nifty 50 index.

Meanwhile, the Nifty PSU Bank index (down 0.14%), the Nifty Oil & Gas index (down 0.05%) and the Nifty FMCG index (down 0.04%) underperformed the Nifty 50 index.

Economy:

India’s retail inflation, measured by the Consumer Price Index (CPI), eased to 1.55% in July, down 55 basis points from 2.10% in June, according to data from the Ministry of Statistics & Programme Implementation. This marks the lowest year-on-year inflation rate since June 2017.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.15% to 6.473 from the previous close of 6.483.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 87.4350 compared with its close of 87.6300 during the previous trading session.

MCX Gold futures for 3 October 2025 settlement rose 0.30% to Rs 100,455.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.41% to 97.67.

The United States 10-year bond yield fell 1.28% to 4.253.

In the commodities market, Brent crude for October 2025 settlement added 36 cents or 0.54% to $65.76 a barrel.

Global Market:

European shares advanced while Asian markets ended higher on Wednesday as the latest U.S. inflation data raised hopes that the Federal Reserve could cut interest rates next month.

In Japan, a report showed manufacturers grew more confident about business conditions after a trade agreement with the United States.

The monthly poll, which tracks the Bank of Japan's quarterly Tankan business survey, reportedly showed the manufacturers' sentiment index rising to plus 9 in August from plus 7 in July, marking a second straight month of improvement.

Further, Japan's annual wholesale inflation slowed for the fourth straight month in July, data showed on Wednesday, underscoring the central bank's view that upward price pressure from raw material costs will dissipate. The corporate goods price index (CGPI), which measures the price companies charge each other for their goods and services, rose 2.6% in July from a year earlier, data showed, slowing from the previous month's 2.9% increase. It compared with the widely reported median market forecast for a 2.5% rise.

On Wall Street, stocks ended higher on Tuesday as inflation data was tamer than expected, soothing investor fears that tariffs are not spiking prices.

The trading session saw the S&P 500 and tech-heavy Nasdaq Composite close at fresh record highs. The S&P 500 added 1.1% to settle at 6,445.76, while the Nasdaq ended 1.4% higher at 21,681.90. The Dow Jones Industrial Average added about 483 points, or 1.1%, to close at 44,458.61.

A widely followed measure of inflation accelerated slightly less than expected in July on an annual basis. The consumer price index increased a seasonally adjusted 0.2% for the month and 2.7% on a 12-month basis, the Bureau of Labor Statistics reported Tuesday.

Excluding food and energy, the core CPI increased 0.3% for the month and 3.1% from a year ago. The monthly core rate was the biggest increase since January, while the annual rate was the highest since February.

Thursday’s producer price index report on wholesale inflation will add another piece of the economic picture. The report comes ahead of the Fed’s Jackson Hole meeting on Aug. 21-23, which could also help shape expectations for the central bank’s next policy move.