iStockIndian equity indices extended gains on Monday as US key indicators hinted at easing of Fed rate hikes and amid firm global market cues. Furthermore, investor focus also turned to corporate health as earnings season kicks off today with results.
The BSE Sensex was trading 791 points or 1.32% higher at 60,691.71. Nifty50 was trading at 18,094, up 235 points or 1.32% at around 10.23 am.
In the Sensex pack, , , and were the top gainers, rising over 1.5%. M&M, , , TCS, and also opened higher.
On the other hand, only , and opened with cuts.
Sectorally, buying was seen across all major sectors. Nifty IT rose 1.25% and Nifty Oil & Gas surged 1.23%. Banks, financial, auto, metal, pharma, healthcare and FMCG stocks also opened higher. Whereas, in the broader market, Nifty Midcap50 increased 0.98% and Smallcap50 advanced 1.02%.
Expert Take
“The US economic data released on Friday is significant from the global market perspective. All data point to a strong but cooling US economy which indicates the rising possibility of a soft landing for the US economy,” V K Vijayakumar, Chief Investment Strategist at said.
“The December jobs increase was 223,000, the lowest in 2 years. The hourly wage increase slowed to 4.6% against the recent peak of 5.6%. All these point to cooling inflation and the possibility of the Fed going less hawkish in 2023,” Vijayakumar added.
Prashanth Tapse, Senior VP (Research) at Mehta Equities said that Nifty's immediate support is seen at 17,407-17,567 and then major support is at its 200-DMA at 17,257 mark. The index would gain strength only after it closes above its biggest hurdle at the 18,463 mark, he said.
Global Markets
Wall Street's main indexes all gained more than 2% on Friday after December payrolls expanded more than expected even as wage increases slowed and services activity contracted, easing worries about the Federal Reserve's interest rate hiking path.
The Dow Jones Industrial Average rose 700.53 points, or 2.13%, to 33,630.61; the S&P 500 gained 86.98 points, or 2.28%, at 3,895.08; and the Nasdaq Composite added 264.05 points, or 2.56%, at 10,569.29.
Asian shares rallied on Monday as hopes for less aggressive US rate hikes and the opening of China's borders bolstered the outlook for the global economy.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.5% to a five-month top, with South Korean shares gaining 2.1%. Chinese blue chips added 0.4%, while Hong Kong shares climbed 1.4%.
Currency Watch
The Indian rupee rose 0.5% to 82.30 against the US dollar in early trade on Monday.
The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, declined 0.26% to 103.60 level.
Crude Check
Brent crude March futures surged 1.09% to $79.43 a barrel and US West Texas Intermediate (WTI) crude futures increased 1.15% to $74.62 a barrel.
(With inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
The BSE Sensex was trading 791 points or 1.32% higher at 60,691.71. Nifty50 was trading at 18,094, up 235 points or 1.32% at around 10.23 am.
In the Sensex pack, , , and were the top gainers, rising over 1.5%. M&M, , , TCS, and also opened higher.
On the other hand, only , and opened with cuts.
Sectorally, buying was seen across all major sectors. Nifty IT rose 1.25% and Nifty Oil & Gas surged 1.23%. Banks, financial, auto, metal, pharma, healthcare and FMCG stocks also opened higher. Whereas, in the broader market, Nifty Midcap50 increased 0.98% and Smallcap50 advanced 1.02%.
Expert Take
“The US economic data released on Friday is significant from the global market perspective. All data point to a strong but cooling US economy which indicates the rising possibility of a soft landing for the US economy,” V K Vijayakumar, Chief Investment Strategist at said.
“The December jobs increase was 223,000, the lowest in 2 years. The hourly wage increase slowed to 4.6% against the recent peak of 5.6%. All these point to cooling inflation and the possibility of the Fed going less hawkish in 2023,” Vijayakumar added.
Prashanth Tapse, Senior VP (Research) at Mehta Equities said that Nifty's immediate support is seen at 17,407-17,567 and then major support is at its 200-DMA at 17,257 mark. The index would gain strength only after it closes above its biggest hurdle at the 18,463 mark, he said.
Global Markets
Wall Street's main indexes all gained more than 2% on Friday after December payrolls expanded more than expected even as wage increases slowed and services activity contracted, easing worries about the Federal Reserve's interest rate hiking path.
The Dow Jones Industrial Average rose 700.53 points, or 2.13%, to 33,630.61; the S&P 500 gained 86.98 points, or 2.28%, at 3,895.08; and the Nasdaq Composite added 264.05 points, or 2.56%, at 10,569.29.
Asian shares rallied on Monday as hopes for less aggressive US rate hikes and the opening of China's borders bolstered the outlook for the global economy.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.5% to a five-month top, with South Korean shares gaining 2.1%. Chinese blue chips added 0.4%, while Hong Kong shares climbed 1.4%.
Currency Watch
The Indian rupee rose 0.5% to 82.30 against the US dollar in early trade on Monday.
The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, declined 0.26% to 103.60 level.
Crude Check
Brent crude March futures surged 1.09% to $79.43 a barrel and US West Texas Intermediate (WTI) crude futures increased 1.15% to $74.62 a barrel.
(With inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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