Sensex, Nifty Jump To Recover From Two Straight Sessions Of Losses

Stock Market India: Sensex index jumps 500 points, tracking a global stocks rally Indian equity benchmarks opened in the green on Thursday, tracking a recovery in a broader Asian stocks gauge from the lowest since the pandemic-led mayhem but trailed the rally on Wall Street as oil prices steadied at levels not seen since before Russia’s invasion of Ukraine. The BSE Sensex index jumped 550. 73 points to 59, 579.

64 in early trade, and the broader Nifty index rose 156. 1 points to 17,780. 50.

On Wednesday, both equity benchmarks fell for the second straight session, driven by a sell-off in global stocks and commodities. Ahead of the markets open, Prashanth Tapse, Senior Vice President for Research at Mehta Equities, said, “after two days of a steady fall, local equity benchmark indices are likely to see a firm opening, mirroring gains in US markets and the subsequent move up in other Asian peers. The rise in US indices was seen despite a Fed official declaring that the focus is to keep a tight leash on inflation.

” “Bargain hunting and value buying are likely to be the preferred theme as the benchmark Nifty braces for a massive technical break-out on the upside,” he added. The Nifty IT and the PSU Bank (public sector bank) index rose over 1 per cent each. Among the Nifty 50 stocks, 45 advanced and the remaining 5 traded in the red, according to the National Stock Exchange data.

“There is a clear message from the market now. Despite high valuation, global headwinds from elevated inflation, slowing global economy and an ultra-hawkish Fed, the domestic market has been surprisingly resilient,” V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, told ANI. The buy-on dips strategy for investors has worked well in this current rally and it makes sense to continue with a similar strategy, he said.

“If the rally is to sustain from the current levels, it will need support from the beaten down IT segment, which looks good from the valuation perspective,” added Mr Vijayakumar. A recovery on Wall Street helped the MSCI index of Asia-Pacific stocks outside of Japan recover after dropping to lows last seen in the aftermath of the 2020 pandemic. The Nikkei index of Japan rose 1.

96 per cent in early trading. The S&P/ASX 200 index in Australia advanced 0. 72 per cent, while MSCI’s broadest index of Asia-Pacific equities ex-Japan jumped 0.

33 per cent. But that fell short of rallies of about 2 per cent in the S&P 500 and Nasdaq 100 overnight, with all three major Wall Street indices experiencing big advances. As traders assessed the stock rebound, Hong Kong and China were sluggish, and US futures fluctuated.

The announcement of worse-than-anticipated trade figures and the prolonging of a lockdown in Chengdu showed no easing in the country’s strict zero-COVID policy, sending blue chips in China marginally lower. While the oil price has partially recovered this week, demand threats from a wave of monetary tightening and China’s COVID-19 troubles were flagged by the slump. Chengdu, a massive Chinese metropolis, prolonged a weeklong lockdown in most of its downtown districts.

Crude prices steadied but were below $90 per barrel for the first time since Russia invaded Ukraine late in February. Investors turn their attention to the European Central Bank rate-setting meeting and Fed Chair’s speech later today. To combat inflation, central banks must raise interest rates rapidly, but they must do it carefully to avoid harming economic shrinkage.

Market volatility caused by the uncertainty has led to significant losses for bonds and stocks this year. “The stock market has rallied several times even as the bond market has shown lots of negative volatility and the dollar continues to creep up,” Federated Hermes Senior Equity Strategist Linda Duessel said on Bloomberg Television. “You have to wonder when can we expect a sustained rally here or to think we are out of the woods,” she added.

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