Indian stocks rise sharply; US Fed Chair's speech in focus

NEW DELHI: Indian stocks opened with sharp gains this morning tracking positive cues from overseas peers. According to analysts, Dow Jones closed 300 points higher, extending the run into the second day.

At 9.35 am, Sensex traded at 59,238.99 points, up 464.27 points or 0.79 per cent, whereas Nifty traded at 17,662.00 points, up 139.55 points or 0.80 per cent. On Thursday, the indices erased all early gains it accumulated to later close some 0.5 per cent lower.

"Even though markets are focused on what the Fed chief Jerome Powel will say at Jackson Hole today, his comments are unlikely to trigger a market trend. Market knows, and has discounted, a hawkish Fed," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Later today, US Fed Chair Jerome Powell is expected to speak at the ongoing Jackson Hole conference on the interest rate-hike pathway and other fundamentals related to the country's economy.

Meanwhile, Indian stock markets have been buoyant for past over one month due to various factors including a fresh infusion of investments by foreign portfolio investors in Indian markets coupled with the latest softening of the inflation rate.

Till early July, foreign portfolio investors (FPIs) were consistently selling equities in the Indian markets for the past nine-to-ten months due to various reasons, including tightening of monetary policy in advanced economies, rising demand for the dollar and high returns from US bonds.

Barring minor losses incurred earlier this week, Indian stocks had extended their bull run for the fifth straight week and managed to recover the entire losses made so far this year.