Key domestic equity benchmark indices, Sensex and Nifty, sharply rebounded in early trade on Thursday, October 15, after a significant decline in the previous session.
The rally was led by an uptick in IT stocks and a decline in crude oil prices. At around 10:17 AM, BSE Sensex was trading at 73,753.14, up 1.33 per cent or 971.25 points. Nifty50 was quoted at 22,899.60, up 1.22 per cent or 276.90 points.
IT giants such as Tata Consultancy Services, Tech Mahindra, and Infosys led gains in the 30-share Sensex basket. ICICI Bank, Axis Bank and Bharti Airtel were among the top gainers.
Crude rates declined below $105 per barrel in the international market. In early trade, Brent crude, the global oil benchmark, was down 1.60 per cent to USD 104.4 per barrel.
US Inflation Data Signals a Rate Hike: Expert
V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, believes that hotter-than-expected US inflation print, which spiked from 3.4 per cent in August to 3.7 per cent in September, has increased the possibility of yet another rate hike by the Fed in October.
This concern triggered big selling in the US market, which led to a sharp correction of 1.88 per cent in the tech-heavy Nasdaq. AI stocks bore the brunt of the selling. The fear has spread to South Korea and Japan, impacting their markets in early trade today,” Vijaykumar added.
From the Indian market perspective, the correction in AI stocks is a positive, he said.
“FIIs who have been selling Indian stocks and buying AI stocks will halt this trend and under favourable conditions might even reverse it. The strength in the IT stocks following the results of HCLTech and the optimism surrounding that will hold the IT index strong,” Vijayakumar noted.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,857.44 crore on Wednesday, according to exchange data.
Asian Market Today
- South Korea’s Kospi tumbled nearly 8 per cent
- Japan’s market was down 5.07 per cent.
- Shanghai’s SSE Composite index and Hang Seng index also quoted lower.
- US markets closed in negative territory on Wednesday.
On Wednesday, the Sensex fell 251.89 points (0.34 per cent) to close at 72,781.89. The Nifty fell 99.25 points (0.44 per cent) to close at 22,622.70.