On the back of progress in Russia-Ukraine peace negotiations, Indian shares surged on Thursday. The US Fed raised interest rates by 25 basis points in one day, which economists said the market had already priced in. But, according to Fed Chair Jerome Powell, the ‘financial system may be extremely strong’ to cope with narrower coverage and the chance of a recession is “not very elevated.”
The positive outlook for the US banking sector spurred a one-day rise in US stocks, with Asian markets catching up. The BSE Sensex rose over 1,000 points to 57,819 this morning. This was up 284 points or 1.67 per cent.
“The Fed increasing rates by 25 bps was expected, but its forecast for six more rises this year was aggressive. So, the overnight smart surge in US equities was unexpected. The market was oversold, and short covering drove indexes upward.
That the US economy is robust and ready to manage tighter monetary policy boosted the market, said V Okay Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
All 30 Sensex stocks have been trading in the black. HDFC rose 3% to Rs 2,357. Asian Paints, Axis Bank, Kotak Mahindra and HDFC Bank all rose over 2%. Titan Company, ICICI Bank, Hindustan Unilever, and IndusInd Bank all contributed 2%.
Earlier in the day, Hong Kong stocks rose nearly 4%, headed by Heng Seng. The Nikkei gained 2.96 percent, the Kospi 1.76 percent, the ASX 200 climbed 1.39 percent, and the Shanghai gained 1.20 percent. The S& P500 rose 2.2% to 4,357.86.
The Dow Jones rose 1.5% to 34,063.10, while the Nasdaq Composite rose 3.8% to 13,436.55.
The International Energy Agency (IEA) said lower oil consumption owing to higher prices wouldn’t balance a shut-in of Russian oil supplies, but not enough to overcome previous decreases.
Brent oil futures rose 66 cents, or 0.67 percent, to $98.68 a barrel, Reuters reported. U.S. WTI crude rose 84 cents, or 0.86 per cent, to $95.86 a barrel.
On Wednesday, foreign portfolio investors (FPIs) bought shares worth Rs 311.99 crore, according to NSE data. According to data, DIIs spent Rs 772.55 crore on the internet.
Published by : Aditya Andharia
Edited By : Kritika Kashyap
