Amid strength in Asian markets, the Sensex soars over 1000 points and the Nifty crosses 16,100; Tata

The Sensex and Nifty opened Friday's session on a positive note following their respective 2.6% cracks the day before on to gains in Asian markets and US equities futures. The Nifty was up 240.40 points or 1.52 percent at 16049.80 at 09:16 IST, while the Sensex was up 773.08 points or 1.46 percent at 53565.31. In total, 257 shares fell, 64 shares remained steady, and 1547 shares rose.

All Sensex stocks opened higher, with gains of 1.7% to 3% being led by Tata Steel, SBI, Axis Bank, IndusInd Bank, Bharti Airtel, Titan, HUL, and L&T. The BSE MidCap and SmallCap indices were up to 1.7% in the broader markets, which were in positive territory.

The Metals, Auto, Energy, Pharma, Media, and Realty indices on the Nifty all saw solid gains of 2% to 3%. Additionally, Nifty Bank, Financials, and IT all increased by about 2% each.

Godrej Consumer fell more than 2% among stocks. Due to a downturn in consumer spending and rising commodity prices, the company recorded a 1% YoY decline in net profit for the March quarter to Rs 363 crore. Following P N Vasudevan's resignation as managing director and CEO of Equitas Small Finance Bank, the company's stock dropped 6%. Vasudevan promised to stay on till the succession and transition process is finished.

Chief Investment Strategist at Geojit Financial Services, VK Vijayakumar, said: "The market's high volatility is primarily caused by two factors. One is that the market has undervalued the Federal Reserve's substantial monetary tightening, which is expected to raise the federal funds rate to about 3% in 2023. Two, there is a chance that the US economy may enter a recession in 2023 that has not yet been fully discounted by the market. The "risk-off, risk-on dynamic" in the market is likely to persist shortly until the second issue is resolved.

The markets may not stabilize for a few weeks. It's critical to recognize that this market's primary characteristic is negative in the near term. The S&P 500 is down 19% from its top while the Nasdaq is down 30% from its peak. These are indicators of market slackness. Since India is the only emerging market where FIIs are sitting on good gains and the market offers the liquidity to sell, they are likely to keep selling there, according to Vijayakumar.

Global Cues

On Thursday, Wall Street stocks ended another choppy day down, edging the market closer to its first bear market since the start of the pandemic. US stocks ended lower as investors worried about inflation and rising interest rates. Cisco Systems fell after providing a bleak outlook. Dow Jones fell 0.75 percent, closing at 31,253.13. To 3,900.79, the S&P 500 fell 0.58 percent. Nasdaq dropped 0.26% to 11,388.50.

Despite declines on Wall Street, Asian markets opened higher on Friday as bargain-hunting buying outweighed some risk-off sentiment among investors. The MSCI index of Asia-Pacific shares ex-Japan increased by 1.32%. The Nikkei in Japan rose 1.01 percent. The ASX 200 in Australia increased by 1.23 percent. The Kospi in South Korea increased 1.52 percent. Shanghai in China increased by 0.98 percent, while Hang Seng in Hong Kong increased by 2.31 percent.

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