Sensex, Nifty Jump Over 1% On Global Stocks Rally Despite Economic Gloom


Stock Market India: Sensex rallied nearly 700 points but ended below the 58,000 level

Equity benchmarks jumped sharply on Friday as Asian stocks ended a five-day losing streak following a recovery in Wall Street shares even as US inflation came in hot and confirmed the Federal Reserve’s aggressive rate hike path.

The BSE Sensex index rallied 684.64 points to end at 57,919.97, below the 58,000 level after having risen above that mark earlier in the session, and the broader NSE Nifty advanced 171.35 points to close at 17,185.70.

In the previous session, both benchmarks crashed ahead of the US inflation data.

This year, the Federal Reserve increased interest rates aggressively to control surging inflation, which attracted capital back to the United States and caused the dollar to soar.

Concerns about the world economy have also increased demand for safe-haven assets and weighed on global stocks.

But trades on Friday were driven by short-sellers in the stock market who seemed to be driving the bounce in equities.

Technology and banking shares helped the MSCI Asia Pacific Index rise nearly 2 per cent from a more than two-year low, with equity benchmarks in China and Japan, the major gainers.

Despite Friday’s surge, uncertainty remains high.

Data released on Thursday showed an 8.2 increase in US consumer prices year over year, confirming that the Federal Reserve will announce another jumbo sized interest rate hike at its upcoming meeting.

The S&P 500 nevertheless rallied back from deep losses, with dip buyers aiding in the spectacular recovery.

“The question after such as big counter move, driven largely by a position adjustment, poor liquidity and changes in hedging flow, is whether the market builds on this,” Chris Weston, Head of Research at Pepperstone Group, wrote in a note, reported Bloomberg. “The lesson once again is that flow drives markets and we must be dynamic to react to the moves.” 

Asia’s broader stock index was set to lose more than 2 per cent for the week as investors continue to be concerned about the possibility of faster rate increases, China’s Covid-Zero policy, and escalating geopolitical tensions, with the gauge lingering close to its lowest levels since April 2020.

Hong Kong’s stock benchmark, a reflection of unsteady confidence, reduced previous advances of almost 4 per cent to end just over 1 per cent higher.


Source Link

- Advertisement -

Share

Latest Updates

Trending News