Indian stocks: Sensex, Nifty rise sharply in early trade

Reflecting improved risk sentiment, India’s stock index surged on Wednesday, as global stocks and bonds rallied on stronger corporate profits and expectations of more gradual rate hikes by the Federal Reserve.

The 30-share BSE Sensex surged 203.03 points to 61,621.99, while the broader NSE Nifty-50 index opened higher.

State Bank of India, Titan, Kotak Mahindra Bank, Dr. Reddy’s, Wipro, Bajaj Finserv, Maruti, HDFC and HDFC Bank were the biggest gainers in the Sensex pack.

Laggards include ITC, UltraTech Cement, Hindustan Unilever and Power Grid.

Investors will be analyzing the minutes of the Fed’s most recent meeting for any signs of talk of a slower pace of rate hikes.

“Markets are likely to gather in today’s session, on hopes that the upcoming Fed minutes will be dovish,” said Prashanth Tapse, senior vice president of research at Mehta Equities.

“Other positives, such as WTI oil prices hovering around $80 a barrel and the Fed chair’s endorsement of a modest 50 basis point rate hike at the December meeting, could prompt traders to look at the monthly F&O (futures and options) expiry tomorrow. before covering short positions,” he added.

Asian shares were also mostly in positive territory ahead of the Federal Reserve’s scheduled of meeting minutes later in the day, renewed restrictions in China dampened investor sentiment somewhat.

“The most important story for Asian investors remains China’s reopening,” Suresh Tantia, senior iInvestment strategist at Credit Suisse in Singapore, told Reuters.

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“We’ve seen Chinese markets rise as much as 20 percent, but those expectations are coming back, and we think the reopening process will be a slower one, not rushed. That means many investors are cutting exposure, cutting Their losses may count toward any profits they may have made in China.”

Investors ignored those concerns, however, with stocks on Wall Street rising overnight and the dollar taking a hit.

While the bond market is screaming “recession”, global equities are showing a positive trend, with investors mostly “buying the dips”, said a Mumbai-based trader.

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