- Retail inflation drops to a nearly six-year low of 3.16% in April, fueling market optimism.
- Bharti Airtel posts a five-fold increase in net profit, driven by tariff hikes and tax benefits.
- Tata Motors reports a 51% decline in net profit amid lower volumes and operating challenges.
The Indian stock market saw a rebound in early trade as retail inflation fell to a near six-year low of 3.16% in April. This significant drop has created an optimistic outlook for potential rate cuts by the Reserve Bank of India in its upcoming June monetary policy review.
Bharti Airtel emerged as a top gainer, surging over 2% after posting a five-fold jump in consolidated net profit to ₹11,022 crore in the March quarter, mainly due to tariff hikes and a one-time gain on tax benefits.
Inflation Hits Six-Year Low, Markets Rally; Bharti Airtel Surges, Tata Motors Slips
India’s retail inflation rate fell sharply to 3.16% in April, marking its lowest level since July 2019. The decline, driven by lower prices of vegetables, pulses, and other essential commodities, has led to renewed expectations of further rate cuts by the Reserve Bank of India in its upcoming June policy meeting. Market sentiment was further bolstered by favorable US inflation data and easing geopolitical tensions between India and Pakistan.
Equity markets responded positively, with the Sensex climbing 281 points to 81,429.65 and the Nifty rising 96.65 points to 24,675. Among the top gainers were Tata Steel, Bharti Airtel, and Tech Mahindra. The metal index outperformed broader markets, gaining 2% amid expectations of higher demand and improved global trade conditions.
Bharti Airtel led the pack, with its stock surging over 2% after reporting a consolidated net profit of ₹11,022 crore in Q4, a substantial rise attributed to tariff hikes and a one-time tax gain. This strong performance highlights the company’s strategic pricing decisions and operational efficiencies amid a competitive telecom landscape.
However, Tata Motors faced setbacks, with its consolidated net profit plunging 51% to ₹8,556 crore due to weaker volumes and rising operational costs. The automotive giant has been grappling with supply chain disruptions and softer demand, leading to a challenging financial quarter.
The sharp drop in retail inflation and favorable corporate earnings have set a positive tone for the markets, though mixed performances across sectors signal cautious investor sentiment.
“Inflation is as violent as a mugger, as frightening as an armed robber and as deadly as a hit man.” — Ronald Reagan
