Stock Market India: Sensex, Nifty rise more than 2%, make up for Monday’s loss and some
Equity benchmarks rose on Tuesday after recovering from deep losses in the previous session after improving market sentiment after Britain withdrew its tax cut plan announced last week that sent the pound and world markets into a tailspin.
After a 10% jump in the previous quarterBoth Indian benchmarks crashed in early October on Monday, including their biggest single-day jump in a month on Friday.
But global stock markets rose for a second day, betting US index futures and European equities that central banks would need to ease their monetary tightening, with economic data already pointing to a sharp slowdown.
With this, the 30-share BSE Sensex index rose 1,276.66 points to 58,065.47 and the broader NSE Nifty-50 index rose 386.95 points to 17,274.30.
IndusInd Bank, Bajaj Finance, Tata Consultancy Services, Bajaj Finserv, HDFC, Tata Steel, Larsen & Toubro, Wipro, HDFC Bank and Axis Bank were the top gainers in the 30-share Sensex group.
Only Power Grid, Sun Pharma and Dr Reddy’s were left behind.
Shrikant Chauhan, Head of Equity Research, Retail, Kotak Securities said, “In the backdrop of strong global cues, the benchmark indices have risen sharply.”
“All major sectoral indices traded in the green, but metals and private bank indices outperformed, rising over 3 per cent in both those indices,” he said.
Markets were fragile on Monday as crude prices jumped on potential output cuts by oil producers, raising fears of even higher inflation and a strong policy response from central banks around the world raising the prospect of a global recession. Will go
While crude oil prices held steady, sentiment improved for riskier assets as investors expect weaker-than-expected US manufacturing data to rise three percent after the Federal Reserve strengthened a weak stance, with implications for the economy. has started.
But some analysts warned that optimism may not translate.
“However, my firm view is that this will not happen. Technically, with a dual mandate, the Fed has effectively become a single-issue central bank, the point being to bring inflation back to the 2 percent target,” Michael Brown, chief strategist at CaxtonFX, told Reuters.
“It’s hard to envisage any kind of pivot until we see the inflation data improving for a few months in a row, with my base case rising by 75 bps left for next month’s verdict. Its on the radar.” It’s hard to have long exposures.”
Market observers noted that a snapback, backed by a correction sentiment in the UK market, was not unusual after September, when global bonds experienced the biggest sell-off in decades and fell in any currency other than the dollar. However, he predicted that it was likely to be brief.
John Briggs, head of economics and market strategy at NatWest Markets, told Reuters: “In our view there will be no major impact on the UK financial situation as a whole.”
“(But) investors took this as a sign that the UK government is at least partly ready to walk back from its intentions and disrupted the market so much over the past week.”