After cracking 2.6 percent each the previous day, the Sensex and Nifty started Friday’s session on an optimistic note amid strong Asian markets and US stock futures. At 09:16 IST, the Sensex rose 773.08 points or 1.46 percent to 53565.31, and the Nifty rose 240.40 points or 1.52 percent at 16049.80. In total, approximately 1,547 shares have been claimed, 257 shares have fallen and 64 shares have remained unchanged.
All Sensex stocks opened higher, led by gains in Tata Steel, SBI, Axis Bank, IndusInd Bank, Bharti Airtel, Titan, HUL and L&T, up 1.7-3 percent. In the broader markets, the BSE MidCap and SmallCap indices were in positive territory, rising to 1.7 percent.
All sectors were solidly higher, with Metals, Auto, Energy, Pharmaceuticals, Media and Real Estate indices rising 2-3 percent on Nifty. Nifty Bank, Financials and IT also rose about 2 percent each.
Among the stocks, Godrej Consumer fell more than 2 percent. The company reported a 1 percent year-over-year decline in net profit for the March quarter to Rs 363 crore due to a slowdown in consumption and high commodity inflation.
Equitas Small Finance Bank fell 6 percent after the company’s director and chief executive officer, PN Vasudevan, announced his departure. Vasudevan said he would remain in his position until the succession and transition process is completed.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “The excessive volatility in the market is largely due to two reasons. First, the market has ignored the severe monetary tightening by the Fed, which has caused the Fed funds- interest rates are likely to rise to about 3 percent in 2023. Second, the market has not fully discounted the likelihood that the U.S. economy will enter a recession in 2023. There is clarity on the second issue, the “risk-off, risk-on.” mode’ in the market is likely to persist in the near term.”
“It may take a few weeks for the markets to stabilize. It is important to realize that the dominant feature of this market in the short term is bearish. Nasdaq is 30 percent below the peak and the S&P 500 is 19 percent below the peak. These are reflections of weakness in the market. In India, FIIs are likely to continue to sell as India is the only emerging market where they are making good profits and providing the market with the liquidity to sell,” said Vijayakumar.
Shares closed another volatile day lower on Wall Street on Thursday, bringing the market closer to the first bear market since the start of the pandemic. US equities came in lower, with Cisco Systems collapsing on a gloomy outlook, as investors worried about inflation and rising interest rates. Dow Jones fell 0.75 percent to 31,253.13. The S&P 500 fell 0.58 percent to 3,900.79 points. Nasdaq fell 0.26 percent to 11,388.50 points.
Asian stocks opened higher Friday despite falls on Wall Street, as bargain-hunting purchases offset some of risky investor sentiment. The MSCI index of Asia-Pacific stocks outside Japan rose 1.32 percent. Japan’s Nikkei won 1.01 percent. The Australian ASX 200 climbed 1.23 percent. The South Korean Kospi jumped 1.52 percent. China’s Shanghai rose 0.98 percent, while Hong Kong’s Hang Seng rose 2.31 percent.
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