After softer-than-expected US inflation data raised hopes of less aggressive rate hikes by the US Federal Reserve, benchmark equity indices opened on a gap-up note on Friday. Buying was seen across all sectors.
BSE Sensex was trading 984 points or 1.62% higher at 61,598 while Nifty50 was trading at 18,302, up 274 points or 1.52%.
“It was well known that the crucial US inflation numbers for October will sway the market either up or down depending on the trajectory of inflation. Now that the inflation print - both CPI and core- has come below expectations, the direction of the markets is a foregone conclusion,” V K Vijayakumar, Chief Investment Strategist at said.
“Since the CPI and core print indicate moderation of inflation, it is probable that the Fed might pause after one more hike of 50 bps. This is good news for global equity markets,” Vijayakumar added.
Among Sensex stocks, , , , , , , and were the top gainers, rising around 2-3.5%. , L&T, , , , and also opened higher.
Sectorally, the Nifty IT advanced 2.94% and Nifty PSU Bank surged 1.63%. Nifty Financial Services and Nifty Auto also opened higher. Whereas in the broader market, Nifty Midcap50 rose 1.02% and Smallcap50 advanced 1.06%.
“US stock markets ended on a positive side on Thursday as investors reacted to the inflation data which comes below expectations that indicate the Federal Reserve might become less aggressive with interest rate hikes,” Mohit Nigam, Fund manager & Head - PMS at Hem Securities said.
On Thursday, US market’s Dow Jones Industrial Average rose 3.70%, S&P 500 surged 5.54% and Nasdaq Composite advanced 7.35%.
Asian markets are trading on a positive note as investors reacted to the US inflation data and hoping inflation has peaked. In early trade in Asian markets, Japan’s Nikkei 225 surged 2.69%, China’s Shanghai Composite increased 1.51% and South Korea’s Kospi rose 2.85%.
The Indian rupee shot up 1.3% to 80.71 against the US dollar in early trade on Friday. This was the Indian currency's highest level against the greenback since September 22. The US dollar index, which measures the strength of the American currency against a basket of six other currencies, was trading around 108 level which was its two-month low.
BSE Sensex was trading 984 points or 1.62% higher at 61,598 while Nifty50 was trading at 18,302, up 274 points or 1.52%.
“It was well known that the crucial US inflation numbers for October will sway the market either up or down depending on the trajectory of inflation. Now that the inflation print - both CPI and core- has come below expectations, the direction of the markets is a foregone conclusion,” V K Vijayakumar, Chief Investment Strategist at said.
“Since the CPI and core print indicate moderation of inflation, it is probable that the Fed might pause after one more hike of 50 bps. This is good news for global equity markets,” Vijayakumar added.
Among Sensex stocks, , , , , , , and were the top gainers, rising around 2-3.5%. , L&T, , , , and also opened higher.
Sectorally, the Nifty IT advanced 2.94% and Nifty PSU Bank surged 1.63%. Nifty Financial Services and Nifty Auto also opened higher. Whereas in the broader market, Nifty Midcap50 rose 1.02% and Smallcap50 advanced 1.06%.
“US stock markets ended on a positive side on Thursday as investors reacted to the inflation data which comes below expectations that indicate the Federal Reserve might become less aggressive with interest rate hikes,” Mohit Nigam, Fund manager & Head - PMS at Hem Securities said.
On Thursday, US market’s Dow Jones Industrial Average rose 3.70%, S&P 500 surged 5.54% and Nasdaq Composite advanced 7.35%.
Asian markets are trading on a positive note as investors reacted to the US inflation data and hoping inflation has peaked. In early trade in Asian markets, Japan’s Nikkei 225 surged 2.69%, China’s Shanghai Composite increased 1.51% and South Korea’s Kospi rose 2.85%.
The Indian rupee shot up 1.3% to 80.71 against the US dollar in early trade on Friday. This was the Indian currency's highest level against the greenback since September 22. The US dollar index, which measures the strength of the American currency against a basket of six other currencies, was trading around 108 level which was its two-month low.
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