Indian equity benchmarks rose on Wednesday and extended their rally for a fourth straight day, taking cues from Asian peers and gains on Wall Street as corporate profits helped boost optimism and a fall in oil prices driven by an increase in US supplies. helped the notion further.
The 30-share Sensex index rose 382.43 points to 59,343.03 in early trade and the broader NSE Nifty-50 index rose 98.45 points to 17,585.40.
Equity benchmark Sensex jumped 549.62 points to 58,960.60 and the broader NSE Nifty-50 index climbed 175.15 points to 17,486.95 on Tuesday.
Even though foreign investors sold shares in the previous session, domestic investors continued to pour money into the stock market, fueling optimism.
Asia Pacific shares were up, while Hong Kong shares declined, while Japan and South Korea gained.
Amit Pabri, Managing Director, CR Forex Advisors, said, “Global stocks have remained bullish for the past two sessions as risk appetite in global financial markets improved on strong US corporate earnings results and a U-turn in UK fiscal planning Is.”
US stocks rose overnight, driven by better-than-expected quarterly reports from Goldman Sachs Group, Johnson & Johnson and Lockheed Martin. The Dow Jones and the S&P 500 were both up 1 per cent.
According to US market futures, the S&P 500 index was set to continue its recent recovery as strong factory output data increased the value of the country’s risk assets.
Shane Oliver, chief economist at AMP Capital, told Reuters: “While stocks have found technical support in recent days and could rise further…
Chris Turner, global head of markets at ING, told Reuters that even a quiet week for US data could slightly extend the dollar’s correction.
“But a core view of not only the Fed, but other central banks heading into an imminent recession, should mean that the core dollar bull trend remains intact,” he said.
But upbeat corporate performance, low valuations and UK policy U-turns have fueled risk-taking.
Global equities were also boosted on Tuesday, propelled by a slump in oil prices, driven by increased US supplies, a slowing global economy and concerns about a slump in demand for the Chinese fuel.
Still, an absolute decline in confidence in stocks and global growth among fund managers surveyed by Bank of America paves the way for equity bottoms in the first half of 2023.
Despite the optimism, Terry Sandven, chief equity strategist at US Bank Wealth Management, warned that challenges remain, according to Bloomberg.
“Analysts’ consensus earnings estimate is subject to downward revision,” he wrote in a note.
“Inflation trends, flamboyant Fed commentary, and the pace of slow earnings growth in 2023 are major contributors weighing on investor sentiment and equity prices,” Mr. Sandven said.