Stock Market Today: After plunging sharply the previous day, Indian equity indexes recovered to post gains on Friday, although dangers point to a drop in global stocks following interest rate warnings from Federal Reserve policymakers.
In early trade, the BSE Sensex jumped 106.58 points to 61,857.18, while the broader NSE Nifty index gained about 0.2%.
In the prior session, both benchmarks had crashed
Asian Paints, Axis Bank, Kotak Mahindra Bank, Infosys, and Cipla were the top five gainers among the Nifty 50 companies, while Eicher Motors, Apollo Hospitals, Mahindra & Mahindra, Britannia, and Hero Motocorp were the top five losers.
“There are currently no substantial global or domestic events that can shift markets decisively. As a result, the market is likely to oscillate around present levels. Furthermore, there is no catalyst to force the market into a steep downturn. The market continues to have a ‘Buy on Dips’ texture “Geojit Financial Services’ Chief Investment Strategist, V K Vijayakumar, told
Recent Fed speakers have emphasised the importance of going further to alleviate pricing pressures, despite the fact that inflation is only just beginning to fall and a measure of US retail sales is rising at the fastest rate in eight months.
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Treasury yields held gains across the curve in early trade in Asia, following the previous day’s rise when St. Louis Fed President James Bullard declared that higher interest rates are needed to discourage inflation and warned of potential financial distress.
The bond market’s recession warning left S&P 500 futures flat on Friday, while Nasdaq futures rose 0.1%.
Mr. Bullard’s comments come a day after San Francisco Fed President Mary Daly indicated that a pause in rate hikes was “off the table.” On Thursday afternoon, Minneapolis Fed President Neel Kashkari reiterated the Minneapolis Fed’s aggressive stance.
Following those cautions, Asian stocks were volatile on Friday.
“The market feels that inflation is declining.” We agree, but the fact that inflation has peaked does not justify the Fed turning around and cutting rates,” Paul Christopher, Head of Global Market Strategy at Wells Fargo Investment Institute, said on Bloomberg Radio. “That’s the underlying divergence between the Fed and the market,” he added.
Stock Market Today: Blue-chip stocks in China decreased 0.1%
Rising coronavirus cases in China, as well as liquidity issues in the country’s bond market, contributed to the fear. Chinese blue-chip stocks fell 0.1% on reports that Beijing has urged banks to monitor bond market liquidity following losses for some investors due to sky-high yields.
An increase in COVID-19 cases in China has raised concerns that efforts to ease severe mobility restrictions that have stifled the economy may be threatened.
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