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Indian Markets Rise as Fed Fears Ease, Smallcaps Hit High
Indian share prices finished higher on Friday.
Investors felt less worried that the US Federal Reserve would raise interest rates soon.
This helped markets in India gain ground.
The Sensex rose more than 362 points, while the Nifty moved up slightly.
Small-company stock indexes reached their highest levels ever during the day.
Metal companies performed especially well.
Technology, pharmaceutical and healthcare stocks fell.
Investors still remained cautious because some people sold shares after prices rose and geopolitical tensions continued.
The rupee also strengthened to 94.48 against the US dollar.
The Sensex rose 362.57 points, or 0.48%, to close at 76,515.43.
The Nifty gained 24.25 points, or 0.10%, to settle at 23,897.70 after briefly crossing 24,000.
Small-cap indices reached fresh lifetime highs amid stock-specific buying.
Nifty Metal led sectoral gains, while IT, pharma and healthcare stocks declined.
The India VIX fell 6.24% to 10.63 as expectations of softer US core inflation eased rate-hike concerns.
- Who
- Indian equity investors, analysts and domestic stock-market participants.
- What
- Indian benchmark stock indexes ended higher, while small-cap indexes reached fresh lifetime highs.
- Where
- Indian markets in Mumbai.
- When
- Friday; the articles do not specify the date.
- Why
- Easing concerns about an imminent US Federal Reserve rate hike supported sentiment, while profit-taking and geopolitical tensions limited gains.
Factors Supporting the Rally
Factors Limiting the Rally
US interest-rate expectations
Factors Supporting the Rally
Easing concerns about an imminent Federal Reserve rate hike and expectations of softer August core inflation supported investor sentiment.
Factors Limiting the Rally
The possibility of future rate decisions remained relevant, leaving markets sensitive to US inflation and bond-yield movements.
Market momentum
Factors Supporting the Rally
Strong corporate earnings, resilient economic growth, robust domestic demand and stock-specific buying supported broader-market confidence.
Factors Limiting the Rally
Profit-taking at higher levels limited gains after the Sensex and Nifty rose during the session.
Risk environment
Factors Supporting the Rally
The India VIX dropped 6.24% to 10.63, indicating lower reported market volatility.
Factors Limiting the Rally
Persistent geopolitical tensions in the Middle East, also described as West Asia, continued to weigh on the rally.
Key facts
- Sensex close
- 76,515.43, up 362.57 points or 0.48%
- Nifty close
- 23,897.70, up 24.25 points or 0.10%
- Sensex intraday high
- 76,883.14, after rising as much as 730 points
- Nifty intraday high
- 24,005.75, briefly reclaiming the 24,000 mark
- Top sector
- Nifty Metal, which gained more than 1%
- Volatility
- India VIX fell 6.24% to 10.63
- Rupee
- Strengthened to 94.48 against the US dollar, supported by fresh FCNR deposit inflows and improved dollar liquidity
Quotes
Market analysts
Analysts commenting on market performance and factors limiting gains
“Indian equities witnessed a relief rally as concerns over an imminent US Fed rate hike eased. However, gains remained capped due to profit booking at higher levels and persistent geopolitical tensions in the Middle East.”
thehansindia.com
freepressjournal.in
“Strong earnings momentum, resilient economic growth, and robust domestic demand continue to underpin investor confidence in the broader market.”
thehansindia.com
Sources
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