Stock Market mutes ‘gloom & doom’ with US data

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Sensex reclaimed 80 level amid global rally

By S Jha

New Delhi, August 16: Sensex rose by over 1300 points in Friday. The 3-share index reclaimed the 80,000 levels after a sharp correction in past few days.

Nifty posted gains of almost 400 points on Friday. The Bank Nifty also galloped with over 700 points gains.

The sharp rally in the indices came on the back of strong global cues. The US bourses had set the tone for a global rally with gains on Thursday.

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The correction in stock markets globally in the last few days was on account of the recession fear in the US. But the falling unemployment data and strong consumer numbers lifted the spirits of the bulls.

Additionally, the Wallmart posted a strong set of numbers in its quarterly results. Overall, the sentiments in the US turned positive. The fear of recession in the US has now taken a backseat.

The strong indicators for the economy in the US brought cheers to bulls all around the world. The lifting tides of sentiments turned the attention of the investors to the tech companies.

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The equity market correction had been sharp for the tech-sector. The gains in the NASDAQ sent the bulls on the hunts for the stocks of the IT companies.

Wipro, TCS, LT Mindtree, Zensar Technology, Birla Soft, and several others gained heavily on Friday. Wipro was the top Nifty gainer on Friday.

Recently listed Ola Electric Mobility extended stellar show on the street. The Ola Electric shares gained 20 per cent on Friday. The e-bike play sprinted on the bourses on the back of a good set of numbers in its quarterly results.

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Kaynes Technology closed above ₹5000 on Friday. The electronics play has been on a phenomenal run ever since it listed on the bourses. Kaynes Technology is also sprinting in the shadow of Ola Electric Mobility amid the supply chain arrangement between the two companies.

The market participants are debating the timing of the rate cuts. A better US economy tilts scale in favour of pessimists.

But the retail inflation firmly goring down in the US tilts the scale in favour of rate-cut optimists. The market participants are betting on a September rate cut by the US Federal Reserve.

The possibility of rate cuts may bring good tides for the realty and the banking sector. The realty index on Friday was the second-best performer behind the IT index. Shares of DLF gained over eight per cent.

(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)

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