Stock market today: after a sharp fall, the markets are recovering

Stock market today: After plunging sharply the day before, Indian equity indices rallied to post gains on Friday, though dangers point to a drop in global equities following interest rate warnings from policymakers at the Federal Reserve.
At the start of trade, the BSE Sensex jumped 106.58 points to 61,857.18, while the broader NSE Nifty index gained around 0.2%.

In the previous session, both benchmarks had crashed

Asian Paints, Axis Bank, Kotak Mahindra Bank, Infosys and Cipla were the top five winners 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 national events that can decisively alter the markets. As a result, the market is likely to swing around current levels. Additionally, there is no catalyst to force “The market continues to have a ‘Buy on Dips’ texture,” Geojit Financial Services Chief Investment Strategist VK Vijayakumar said.

Recent Fed speakers have underscored the importance of going further to ease price pressures, despite inflation just starting to decline and a measure of U.S. retail sales rising at the pace the fastest in eight months.

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Treasury yields maintained full-curve gains in early Asian trade, after rising the day before when St. Louis Fed President James Bullard said higher interest rates were on the way. necessary to discourage inflation and warned of possible financial difficulties.

The bond market recession warning left S&P 500 futures unchanged on Friday, while Nasdaq futures rose 0.1%.

Bullard’s comments come a day after San Francisco Fed President Mary Daly said a pause in rate hikes was “out of order”. On Thursday afternoon, Minneapolis Fed President Neel Kashkari reiterated the Minneapolis Fed’s aggressive stance.

Following these warnings, Asian stocks were volatile on Friday.

“The market feels that inflation is down.” We agree, but the fact that inflation has peaked is no reason for the Fed to turn around and cut rates,” said Paul Christopher, head of global market strategy at Wells Fargo Investment Institute, on Bloomberg Radio. “That’s the underlying divergence between the Fed and the market,” he added.

Stock market today: Blue chip stocks in China fell 0.1%

Rising coronavirus cases in China, along with liquidity issues in the country’s bond market, have contributed to the fear. Blue-chip Chinese stocks fell 0.1% on reports that Beijing urged banks to monitor bond market liquidity following some investors’ losses from sky-high yields.

A rise in COVID-19 cases in China has raised fears that efforts to ease tough mobility restrictions that have stifled the economy are at risk.

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