Sensex Surges Over 1,150 Points As Global Risk Sentiment Improved

0 0
0 0
Sensex Surges Over 1,150 Points As Global Risk Sentiment Improved
Read Time:2 Minute, 12 Second


Stock Market India: Sensex, Nifty rally sharply as global risk sentiment improves

Indian equity benchmarks surged on Friday, reversing sharp losses in the previous two sessions, tracking Wall Street stocks’ best performance since 2020 after US inflation eased to the lowest since January and sparked hopes the Federal Reserve would tone down its aggressive tightening stance.

The BSE Sensex index jumped 1,181.34 points, or 1.95 per cent, to close at 61,795.04, and the broader NSE Nifty index climbed 321.50 points, or 1.78 per cent, to end at 18,349.70.

On Friday, Asian stocks scaled a seven-week high, while the dollar dipped as expectations for a slowdown in the Federal Reserve’s rapid interest rate hikes were raised by lower-than-expected US inflation reading.

MSCI’s broadest index of Asia-Pacific shares outside Japan soared over 5. per cent, its biggest one-day percentage jump since March 2020, even as the index is down about 23 per cent for the year.

Data on Thursday showed the US consumer price index rose 7.7 in October from a year ago, the weakest rise since January and the first one under 8 per cent since February.

Wall Street stocks rallied, resulting in their best performance since 2020.

“It’s something the market had been waiting for a long time,” Shane Oliver, Head of Investment Strategy and Chief Economist at AMP Capital, told Reuters. “There was a lot of money sitting on the sidelines.”

Following the release of the inflation data, investors flocked to riskier assets, sending the dollar plunging and US Treasury yields to a five-week low.

But even as some Fed officials welcomed the idea of more gradual rate increases, US policymakers stressed on Thursday that borrowing costs might remain higher for longer than generally believed.

“We would not extrapolate one month of softer inflation data as indicating inflation is now convincingly on a path toward the two-per cent target,” Citi Strategists wrote in a note, referring to the 2 per cent inflation target the Fed has set, according to Reuters.

“The data and market reaction is reminiscent of previous cycles of optimism regarding the ease with which the Fed might quell too-high inflation,” Citi added.

Global risk assets also got a leg up from easing COVID-19 restrictions in China.

A penalty for airlines bringing in infected passengers has been eliminated in China. Quarantine periods for people close to cases and those arriving abroad have been shortened by two days. 

Featured Video Of The Day

Bank of England Delivers Biggest Interest Rate Hike In 30 Years



Source link

About Post Author

Newslaava

“I am an architect, animator and teacher working in architecture and design at __india__. This site is a great resource for anyone looking to get more updates from their home. Fill your home (heart) with more trending accessories from choosing the best colors for your mind room. NewsSalava.com will rob your heart .... Cool
Happy
Happy
0 %
Sad
Sad
0 %
Excited
Excited
0 %
Sleepy
Sleepy
0 %
Angry
Angry
0 %
Surprise
Surprise
0 %

Average Rating

5 Star
0%
4 Star
0%
3 Star
0%
2 Star
0%
1 Star
0%

Leave a Comment

The Buccaneers offence is not strong, no. But is it sufficient? engaland world cup: An employee of the US Embassy in London was fired Giannis Antetokounmpo took control as the Bucks beat the Cavaliers. Eagles coach Nick Siriani: ‘I’m emotional because I love Frank Reich’ Yes Manika Batra the first Indian woman paddler to win a bronze medal