The Sensex index regained 60,000 points in early trading on Friday as stock indices extended gains from the previous session, tracking the rally in Asian bourses as the dollar eased as markets further relaxed in the wake of the European Central Bank’s record rate hike and the US Federal Reserve. Statements of the head of the reserve hardline.
While developments in major central banks bolstered expectations of heavy tightening ahead and point to high volatility, the benchmark 30-share Sensex Index rose more than 300 points to trade at 60,001.66 points.
But the death of Queen Elizabeth II, which sparked an outpouring of sympathy from around the world, on Friday casts a shadow over the wild market volatility.
For now, though, the broader NSE Nifty is up 127.2 points to 17,925.95.
Reuters reported that news related to de-escalation on the India-China border also boosted Indian stocks.
The Nifty Bank Index jumped 0.9 per cent and the Nifty Metal Index jumped 1.4 per cent.
However, as the world’s largest exporter of the rice crop seeks to increase supplies and stabilize domestic prices, grain producers have fallen behind after the country banned the export of broken rice and imposed a 20 percent export tax on the sale of various varieties.
Early Friday, the MSCI Asia Pacific Index of Shares outside Japan managed a 0.3 percent increase. However, it was on course for a 1.2 per cent weekly decline after it was hit by several excessive rate hikes from central banks around the world this week – and expect more to come.
Hong Kong’s Hang Seng Index is up 0.4 percent, Japan’s Nikkei is up 0.3 percent, and China’s blue-chip index is up 0.2 percent.
After a big sell-off earlier in the week, Wall Street’s major indexes made slight gains overnight leaving the S&P 500 above 4,000 points for the first time since late August.
As investors assess whether monetary tightening to tackle inflation in the US and Europe is close to being priced in, markets stabilize, S&P 500 futures are up 0.3 percent, and Nasdaq futures are up 0.5 percent, indicating increased risk. .
Global stocks are on track for their first weekly gain in four weeks, providing some relief from the bearish warning signs that markets have been circulating due to monetary tightening, energy problems and a slowing Chinese economy.
“Markets are finally getting to grips with the fact that rates are almost certain to rise by 75 basis points when the Fed moves next,” Joanne Finney, partner and portfolio manager at Advisors Capital Management, said on Bloomberg TV.
“What we’re seeing though is some acknowledgment that the sell-off we saw in the second half of August may have been a bit exaggerated,” she said.
Despite the “very significant social costs” associated with previous inflation battles, Federal Reserve Chairman Jerome Powell said Thursday that the bank is “fully committed” to containing inflation.
“With Powell offering little in the way of a pullback from market prices, we believe the FOMC will confirm market expectations. In addition, we now expect a 50 basis point (basic point) rise in November, although it is a close call,” analysts at Barclays to Reuters.
This came after news from the Atlantic region confirmed the broader expectations of the European Central Bank (ECB) fight against rising inflation.
While the currency union economy is expected to enter a winter recession, the European Central Bank raised interest rates by 75 basis points and signaled additional increases to fight inflation.