Indian equity markets rebounded on Thursday, snapping 3-day losing streak, as investors indulged in bargain buying. The S&P BSE Sensex added over 400 points to quote around 73,350 levels, cent, to 73,314 levels, while the Nifty50 was seen testing the 22,300 level.
Power Grid, IndusInd Bank, Sun Pharma, Wipro, M&M, Tata Motors, Reliance Industries, ICICI Bank, and L&T were leading the benchmarks to positive zone.
In the broader markets, the BSE MidCap and Smallcap indices were outperforming the frontline indices as they climbed 0.8 per cent each.
Among sectors, the broad-based rally was led by the Nifty Metal, Media, and PSU Bank indices which gained over 1 per cent each.
Dr. V K Vijayakumar, Geojit Financial, said: “The Iran-Israel tension in West Asia continues to weigh on stock markets globally. Until this uncertainty is out of the way, markets are unlikely to take a strong directional up move. Meanwhile the market is coming to terms with ‘higher-for-longer interest rate’ in the US since inflation continues to be sticky at lower levels. It seems that the market is reconciled to 2 rate cuts this year, that too backloaded. Since the US 10-year bond yield is hovering around 4.57%, more FII selling is likely, putting pressure on large-caps. This will provide opportunities to investors to slowly accumulate high quality largecaps where the margin of safety is high.”
Global Cues
On Thursday, Australian shares staged a rebound, breaking a streak of five consecutive days of losses. The market was led higher by gains in mining and financial sectors, as investors analyzed a significant domestic jobs report to gauge the central bank’s monetary policy direction.
The S&P/ASX 200 index closed 0.5% higher at 7,642.1 points. The benchmark posted its first session of gains since April 10.
Tokyo stocks recovered from earlier declines and closed higher on Thursday, as investors closely monitored developments in the Middle East. The benchmark Nikkei 225 index increased by 0.31%, or 117.90 points, to finish at 38,079.70, while the broader Topix index gained 0.54%, or 14.30 points, closing at 2,677.45.
On Wednesday, U.S. stocks experienced a decline in volatile trading as investors evaluated the Federal Reserve’s position on interest rates and sifted through a series of disappointing earnings reports at the start of the financial reporting season.
Comments
0 comment