Inflation, global cues boost markets
The markets have surged in early trade on the back of a sharp decline in inflation numbers. Also, overnight rally in Wall Street has given a boost to the benchmark indices.
The Sensex is up over 200 points while the Nifty has advanced 75 points.
“Though, Dow rallied yesterday, high volatility across global markets remains a key concern. Moreover, economic fundamentals would remain under stress for the next 12 months and commodities could remain under pressure in near term,” said Vetri Subramaniam, Vetri Subramaniam, Religare Aegon Asset Management.
Heavy buying has emerged in realty, metals and bank stocks. The realty index on the BSE is up over 4.5 per cent and the metal index has gained 3.4 per cent. BSE Bankex has surged 3.3 per cent while capital goods index is trading 2.5 per cent higher.
“Despite positive opening, market movement would remain subdued. At this point, outcome of the G-20 meeting is being awaited by the markets,” said Pankaj Pandey, Head(Research), ICICI Securities.
Among the Sensex stocks, JP Associates leads gainers. It is up 5.5 per cent. Reliance Infra, Satyam Computers and RCom are the other main gainers in the group.
Investors did an abrupt turnaround on Wall Street on Thursday, muscling the Dow Jones industrial average up more than 550 points after driving it down near its lows for the year on a stream of negative economic and corporate news.
The Dow rose 552.59, or 6.67 percent, to 8,835.25, after falling as low as 7,965.42 and rising as high as 8,876.59. That's a trading range of 911 points. The Dow did not sink below its Oct. 10 trading low of 7,882.51.
The Dow's nearly 553-point gain was the third-largest single-session point gain on record, following the 889-point rise on Oct. 28 and the 936-point surge on Oct. 13.
The Standard & Poor's 500 index rose 58.99, or 6.92 percent, to 911.29, after dropping to 818.69 — well below its previous intraday low of 839.80 set Oct. 10.
The Nasdaq composite index rose 97.49, or 6.50 percent, to 1,596.70.
On the back of the rally in US, key Asian indices are trading firm today. South Korea’s Kospi, Hong Kong’s Hang Seng and Japan’s Nikkei are up over 0.8 per cent each.
(With AP inputs)
By NDTV