After a consistent trend of downfall, the stock market bounced back globally. Check what impacted the rally in benchmark indices today.
Equity benchmark indices Sensex and Nifty bounced back sharply in early trade on Friday tracking a significant rally in the US and Asian markets along with buying in blue-chips Tata Consultancy Services and Reliance Industries.
Rebounding from Thursday’s decline, the 30-share BSE Sensex jumped 1,098.02 points to 79,984.24 in early trade. The NSE Nifty surged 270.35 points to 24,387.35.
All the 30 Sensex firms were trading in the positive territory. Tata Motors, Tech Mahindra, Mahindra & Mahindra, HCL Technologies, Power Grid, NTPC, Tata Consultancy Services and Reliance Industries were the biggest gainers.
Why led the rally in the stock market today? Check major reasons over here.
U.S Markets Positive Trend
The labour data showed that in the US the jobless claims have dropped as compared to last week, boosting the positive sentiments on Wall Street. The US markets ended significantly higher on Thursday. Nasdaq ended higher, up 464 points or 2.87 per cent at 16,660. The S&P 500 up 119 points or 2.30 per cent at 5,319. Dow Jones up 683 points or 1.76 per cent at 39,446.
“The sharp rebound in the US markets yesterday indicates that the recession fears were a bit overdone. The latest initial jobless claims came lower-than-expected indicating that the labour market is not loosening as many sceptics feared,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services to Zee Business.
Asian Market Rally
In Tokyo, the Nikkei 225 index was up 1.6 per cent at 35,380.23. The yen again fell under pressure after three days of rising against the dollar, giving a lift to Japanese stocks that often rise when the yen falls.
On early Friday trading, the US dollar rose to 147.15 Japanese yen from 147.24 yen. The euro cost USD 1.0924, up from USD 1.0918.
Also, the Asian markets traded on a positive note as recession fears cooled. Further, a better inflation print from China also aided sentiment. MSCI Asia Pacific index traded with gains of 1.57 per cent.
The Hang Seng in Hong Kong added 1.9 per cent to 17,211.26 and the Shanghai Composite index edged 0.2 per cent higher to 2,876.51. In South Korea, the Kospi jumped 1.5 per cent to 2,595.50, Australia’s S&P/ASX 200 advanced 1.4 per cent to 7,792.80.
Taiwan’s Taiex gained 3.4 per cent, with chip maker Taiwan Semiconductor Manufacturing Co. gaining 3.6 per cent, tracking Big Tech stocks’ rally on Wall Street. The SET in Bangkok was up 0.5 per cent.
Across The Board Buying
The global positive sentiment had impacted Indian indices and there was seen broad-based buying in the IT Stocks after the positive US jobs data and a rebound in the global markets.
Tech stocks are likely to stage a recovery today drawing inspiration from the positive US cues, said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
(Disclaimer: The information provided in this article is for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)