The Sensex and Nifty benchmarks started on an upbeat note on Friday morning, tracking strength in the US overnight and Asian markets this morning. At 09:16 IST, the Sensex was up 526.66 points or 1.01 per cent at 52792.38, and the Nifty was up 163.50 points or 1.05 per cent at 15720.20.
Top Gainers & Losers
Tech M and Asian Paints were the only losers on the two benchmarks.
In the broader markets, the BSE MidCap and SmallCap indices were also in the positive territory, rising up to 1 per cent.
Sectorally, all pockets sat firmly in green. Gains were led by Nifty bank, financials, private bank and media. Realty, auto, IT, FMCG, pharma were other notable gainers. The market breadth was also extremely positive with the advance-decline ratio at 4.8:1.
Among stocks, DCM Shriram rose 2 per cent. Its board has approved to invest up to Rs 65 crore for a 26 per cent stake in a special purpose vehicle, which will be formed to set up a wind-solar hybrid renewable power project.
Dr VK Vijayakumar, chief investment strategist at Geojit Financial Services, said: “There are some clear economic and market trends. Leading indicators such as PMI and retail sales in Europe and the US indicate an economic slowdown. Most central banks of the world are hiking rates in this slowdown. Therefore, the slowdown will continue and may aggravate pushing the US economy into recession. Since the market knows this, equities are in oversold territory, triggering short-term upmoves. The whipsaw movement in Nifty yesterday reflects this uncertainty, confusion and lack of direction. Accenture’s results indicate continued robust demand for IT. Indian IT companies’ Q1 results are likely to be very good, but the stock movements will be decided by their FY23 guidance. A Crash in metal prices is a strong positive for autos.”
Asian markets jumped in Friday’s trade, tracking Wall Street rallies, as investors weighed global inflation and recession risks. MSCI’s index of Asia-Pacific shares outside Japan was up 0.96 per cent.
Tokyo’s key Nikkei index opened flat on Friday in cautious trade after Wall Street rallies, as investors weighed global inflation and recession risks. The benchmark Nikkei 225 index was up 0.04 per cent, or 11.14 points, at 26,182.39 in early trade after floating between positive and negative territory, while the broader Topix index was down 0.22 per cent, or 4.05 points, at 1,847.69.
Stocks in global markets rose on Thursday as US Treasury yields fell to two-week lows, while copper was at 16-month lows as investors worried about a possible global economic slowdown. The Dow Jones Industrial Average rose 194.23 points, or 0.64 per cent, to 30,677.36, the S&P 500 gained 35.84 points, or 0.95 per cent, to 3,795.73 and the Nasdaq Composite added 179.11 points, or 1.62 per cent, to 11,232.19.