Indian benchmark indices opened higher today in line with a strong rebound in global markets. Sensex zoomed 1,087 points to 58,322 and Nifty rose 317 points to 17,331. The market capitalisation of BSE-listed firms reached a high of Rs 273.42 lakh crore. HCL Tech was the top Sensex gainer, rising 3.95 per cent, followed by Infosys, Tech Mahindra, ICICI Bank and SBI.
All 30 Sensex shares were trading in the green.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services said, “The uncanny ability of the market to surprise was in full flow on Thursday when the S&P 500 shot up by 5% from the day’s lows despite the September CPI inflation numbers coming slightly higher than expectations. Such sharp rallies happen due to market positioning. The market was oversold on expectations of higher inflation and the consequent continuation of the hawkish Fed stance. This oversold market positioning triggered short covering resulting in an incredible 1400 up move in the Dow from its low levels. Similar short covering and sharp rallies can happen in India too. The big question, however, is regarding the durability of this rally. Under the present unfavourable global macro construct, the rally is unlikely to sustain beyond a level.”
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Banking and IT stocks were the top gainers with their BSE indices rising 847 points and 736 points, respectively.
Market breadth was positive with 2,296 stocks ending higher against 553 stocks falling on BSE. 112 shares were unchanged. Foreign institutional investors were net sellers on Thursday as they offloaded shares worth Rs 1,636.43 crore, as per exchange data.
Mohit Nigam, Head – PMS, Hem Securities said, “The fact that India is establishing global standards on the digital front and that there is trust in the nation that it will be able to weather geopolitical and economic uncertainty and still perform will be encouraging to traders. S&P Global Ratings stated that growth in significant Asia Pacific economies like China, India, and Indonesia will be less affected because their economies are more domestically oriented, providing some support. The US markets ended the day sharply higher on Thursday as traders discounted headline inflation data for September that came in at 8.2%, which was higher than expected. As investors recovered from high inflation news, Asian markets are leading Wall Street in trade on Friday. On the technical front, immediate support and resistance in Nifty 50 are 17000 and 17400 respectively. Bank Nifty’s immediate support and resistance are 38,500 and 39,500 respectively.”
Previous session
Market ended lower on Thursday following heavy selling in banking, finance, and capital goods stocks due to inflation and growth concerns. Sensex fell 390.58 points to end at 57,235.33 and Nifty closed 109.25 points lower at 17,014.35. The market cap of BSE-listed firms fell to Rs 269.85 lakh crore.
Foreign institutional investors were net sellers on Wednesday as they offloaded shares worth Rs 542.36 crore, as per exchange data.
Global markets
In Asia, Tokyo’s Nikkei 225 jumped 3.4% to 27,141.18 and the Hang Seng in Hong Kong gained 3.3% to 16,935.67. The Shanghai Composite Index added 1.7% to 3,067.65 and the Kospi in Seoul rose 2.4% to 2,214.48. Sydney’s S&P-ASX 200 advanced 1.8% to 6,759.40. New Zealand and Southeast Asian markets also rose. In the US, the Dow Jones Industrial Average rose 2.8% at 30,038.72. The Nasdaq composite climbed 2.2% at 10,649.15.