Markets surge on positive global cues as trading begins
PTC News Desk: Friday’s advances in Indian markets came after the global stock markets’ surge.
During the first session, the 30-share BSE Sensex increased 191 points to 24,334.85. At 79,751.90, the NSE Nifty increased by 646 points.
After the sell-off on August 5, which was sparked by concerns about a US recession and the unwinding of Yen carry trades, markets around the world have wisely recovered. Based on the most recent US inflation and unemployment figures, there is no sign that the US is about to enter a recession.
“The Indian markets are supported by robust global cues. All three of the worldwide hazards that existed at the beginning of the week have significantly diminished. Israel has escaped an attack by Iran because to diplomacy. According to banking and market analyst Ajay Bagg, US CPI and PPI data indicate a deflationary tendency, and fewer claims for unemployment benefits increased the likelihood of a soft landing in the US economy.
He went on, “For India, one issue that has removed around $2.8 billion from the cash equity section this month so far is ongoing FPI selling. The markets that are moving sideways have entered a period of consolidation and could be preparing for another effort to reach all-time highs during the coming week.
Also Read: ISRO’s SSLV-D3 launches: India’s compact rocket aims to capture global satellite market
The Nifty Midcap 50, Nifty Small Cap 100, and Nifty Micro Cap 250 broad market indices all saw gains of more than 1% in the first trading day. Every other index increased as well.
Nifty Auto, Nifty Media, and Nifty IT led the advances in the sectors indices, rising by more than one percent. Plus, Nifty Bank added 0.91 percent.
At the time this report was filed, 46 stocks on the Nifty 50 stocks list were up and 4 stocks were down.
If indices close above 24500/80000, the market may reach 24900/81200, signaling the emergence of real strength. We recommend cutting down on weak long bets till the market closes below 24,500. While it is still above the 50-day simple moving average, Bank-Nifty is finding it difficult to go above 50,500. The index is anticipated to stay range-bound as long as it stays below 50,500, according to Kotak Securities Head of Equity Research Shrikant Chauhan.
Japan’s Nikkei 225 index rose around 3% to 37,800 points in the Asian markets. The KOSPI in South Korea joined the rally with a spike of 1.75 percent, while the Hang Seng index in Hong Kong increased by more than 1.70 percent and the Taiwan Weighted index by 1.95 percent.
Thursday saw a 2.34 percent increase on the Nasdaq and a 1.61 percent jump in the S&P 500 in US markets.
Also Read: Kolkata doctor murder case: Doctors threaten 24-hour strike as protests intensify nationwide
The Nifty 50 increased by 4.75 points, or 0.02 percent, to 24,143.75 on Wednesday, while the Sensex increased by 149.85 points, or 0.19 percent, to close at 79,105.88. In observance of Independence Day, the Indian stock market was closed on Thursday.