India’s share benchmark rose on Wednesday and extended their gains for a fourth straight day, taking cues from gains in Asian peers and on Wall Street as corporate profits helped. boosted optimism and a drop in oil prices due to increased US supply helped further sentiment.
The 30-stock Sensex index rose 382.43 points to 59,343.03 in early trading and the broader NSE Nifty-50 index rose 98.45 points to 17,585.40.
Equity benchmarks jumped on Tuesday, with the Sensex index up 549.62 points to 58,960.60 and the broader NSE Nifty-50 index up 175.15 points to close at 17,486.95 .
Even when foreign investors were net sellers in the previous session, domestic investors continued to pour money into the stock market, which fueled optimism.
Asia Pacific stocks were volatile, with Hong Kong stocks falling while Japanese and South Korean stocks rose.
Amit Pabari, CEO of CR Forex Advisors, said: “Global stocks have remained buoyed over the past two sessions as US corporate earnings results surged and UK financial plans were turned upside down. reverse.
Overnight, US stocks rose, helped by better-than-expected quarterly reports from Goldman Sachs Group, Johnson & Johnson and Lockheed Martin. The Dow Jones and S&P 500 both gained 1%.
According to US market futures, the S&P 500 is set to continue its recent rally as strong factory output data boosted the value of the country’s riskier assets.
Shane Oliver, Chief Economist at AMP Capital, told Reuters: “While stocks have found technical support in recent days and could see further upside… the short-term downside risk to equities remains. At a high level”.
Chris Turner, Global Head of Markets at ING, told Reuters that a quiet week for US data could also see a slight lingering dollar correction.
“But the core view of not only the Fed, but other central banks that is entering a potential recession means that the dollar’s core bullish bias remains intact,” he said.
But upbeat business performance, lower valuations and the UK’s opposite policy all promote risk-taking.
On Tuesday, global stocks were also boosted by lower oil prices on worries about rising US supply, a slowing global economy and falling Chinese fuel demand.
However, the complete collapse in confidence in equities and global growth among fund managers polled by Bank of America paved the way for a stock bottom in the first half of 2023.
Despite the optimism, Terry Sandven, director of equity strategy at Bank of America, warned that challenges remain, according to Bloomberg.
“Analysts consensus earnings forecasts are still subject to downward revisions,” he wrote in a note.
“Inflation trends, hawkish Fed comments and slower earnings growth in 2023 are key factors influencing investor sentiment and stock prices,” said Sandven.