Sensex, Nifty rise on strong global cues

Vinod Nair, Head of Research, Geojit Financial Services, said, “Selling by Foreign Institutional Investors (FIIs) is consolidating the positive domestic trend.” FIIs became net buyers of Indian shares on Wednesday.

On Wednesday, the Sensex and Nifty gained 1.86% and 1.87%, respectively.

Deepak Jasani, Head of Retail Research, HDFC Securities said, “Nifty registered its best day in a week as fears eased in global markets and fresh hopes of stimulus in China.” Asian markets rose 0.09%-9.08%, with Chinese shares up. Indices are on the rise.

Jasani said mainland companies listed in Hong Kong posted the biggest gains since the global financial crisis, and a Chinese technical index added a record 20%. He attributed gains for Asian and European equities on Wednesday to a senior Chinese official, prompting Beijing to take steps to boost the world’s second-largest economy. Jasani said the war in Ukraine and a hike in US interest rates had calmed investors’ uneasiness.

Meanwhile, all eyes are on the US Federal Reserve meeting on Wednesday night.

“Markets will be the first to react to the outcome of the US Fed meeting in early trade on Thursday. Apart from global updates, the scheduled weekly close will further add to volatility”, said Ajit Mishra, Vice President, Research, Religare Broking Ltd.

Economists and investors expect a hike of 25 basis points, and if the Fed’s meeting results in line with expectations, the positivity in the markets could be supported, experts said.

Nair said, “The in-line policy outlook will give relief to the market and we may see a decline in volatility.”

Fall in crude oil prices also boosted investor sentiment. After crossing the $130 per barrel level last week, Brent price is trading near $100.

ICICI Securities Ltd said a fall in crude oil prices amid easing supply disruption concerns and rising Covid-19 cases in China, which offset demand concerns. The fall in oil prices may also ease the pressure on the rupee.