On Thursday, benchmark indices rose in response to favorable inflation statistics. Sensex increased by over 500 points, while Nifty rose by 120 points. Except for FMCG, Auto, and Media, all indices ended in the green. Axis, Bajaj Finance, HDFC, and Tech Mahindra were among the companies with the greatest gains in the Indian stock market. Tata Consumer had plummeted.
Asia’s stock markets followed the advance on Wall Street on Wednesday as data from the United States showing lower inflation than expected. The underperforming inflation fueled rumors that the Federal Reserve will shift to a slower pace of interest rate hikes. However, the Fed quickly put an end to the rumors by stating that more increases in interest rates may be necessary, which put a damper on the conjecture. The European stock market opened in the green but quickly settled into a flat trading pattern.
India’s stock market performance: soaring Sensex and Nifty
On Thursday, Indian benchmark indices staged a resounding comeback, due largely to the publication of some upbeat inflation numbers. The Sensex finished at 59,332, a gain of more than 500 points that brought it above the 59,000-point threshold. Nifty finished at 17,659, which is a 124-point increase from its previous closing price of 17,650.
Stocks in the information technology and banking and financial sectors led the rally. Axis Bank, Bajaj Finance, Wipro, ICICI, Tech Mahindra, and HDFC were among the most notable companies to see their share prices rise. The FMCG and Media indices both experienced losses, with Tata Consumer experiencing a loss of more than 2%.
Impact on other Asian stocks
Asian stocks followed the gains made on Wall Street on Wednesday and closed on a high note. This came as softer-than-expected statistics regarding US inflation encouraged bets of less aggressive rate hikes from the Federal Reserve.
Because of a national holiday in Japan, the Nikkei index was closed. On Thursday, the benchmark index for China’s equity markets saw its highest single-day gain in more than three months. Both the Hang Seng index and the Shanghai Composite index saw gains of 1.6% and 2.4% respectively.
State of the European stock markets
On the other hand, European equities were unable to hold onto their early morning gains. This fall occurred after officials from the Federal Reserve indicated that they remained steadfast on the necessity for additional interest-rate hikes.
Fed officials comment on upcoming rate hikes
Fed officials have emphasized that additional rate hikes are on the way. They also indicated that investors should reassess their expectations of rate reductions for the following year in order to support economic development. The comment is going to have an impact on both the performance of Wall Street and Europe on Thursday.
Read more: US Federal reserve to raise rates as economic slowdown worsens
