Stock Market Update: The benchmark equity indices on the BSE and National Stock Exchange (NSE) opened more than 1% higher on Friday, following the lead of their international peers that increased after a less-than-expected rise in US consumer prices stoked hopes that the Federal Reserve might slow down its rapid pace of interest rate hikes.
The S&P BSE Sensex was up 878.18 points (1.45%) at 61,491.88 at 9:15 am, while the Nifty 50 was up 257.50 points (1.43%) at 18,285.70.
Early on Friday, all Sensex constituents were trading higher.
Infosys, Wipro, Tech Mahindra, Tata Steel, HCL Technologies, and IndusInd Bank were the companies that saw the most success in the early deals.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, commented on the market, stating that it was well known that the market will be affected by the critical US inflation statistics for October, either positively or negatively depending on the trend of inflation. The direction of the markets is now obvious given that both the CPI and core inflation prints came in below expectations. The Nasdaq is up 7.35 percent, the S&P is up 5.50 percent, the dollar index is down to 108.3 and the US 10-year yield is down to 3.8%. The numbers speak for themselves. Since the CPI and core print show that inflation is moderate, it is likely that the Fed will halt after one more 50 bps rate increase.
“Since the value of the dollar is declining, FIIs are expected to boost their purchases, and since the Monthly SIP figure has surpassed Rs 13,000 crores, DIIs must also use the inflows. For the immediate future, Advantage Bulls applies. Only time will tell if the Nifty sets a new record, he continued.
World Markets (from Reuters)
After a smaller-than-expected rise in US consumer prices fueled optimism that the Federal Reserve will slow its aggressive pace of interest rate hikes, Asian markets surged higher on Friday, while the dollar suffered significant losses.
The largest MSCI index of Asia-Pacific shares outside of Japan increased by 3.72%. Japan’s Nikkei index gained 3%, while Australia’s S&P/ASX 200 index increased by 2.43 percent.
The US consumer price index increased 7.7% year over year, the smallest increase since January and the first time since February that the annual increase was under 8%. According to the data, the S&P 500 and Nasdaq experienced their largest overnight percentage gains in more than two and a half years.
Mainland Hong Kong shares soared 6.5% in early trade while China stocks opened 2.1% higher. China’s markets have had a rocky few weeks, falling on COVID-19 outbreaks, the accompanying lockdowns, and weak economic data, but also periodically jumping on expectations of an eventual economic reopening.
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