Stock markets recover losses; Banks, IT bring stability
By S Jha
New Delhi, October 12: The stock markets staged a late rally during the day amid signs of stability in the US futures market, while the beginning of the quarterly results showed signs of the steady corporate earnings.
The first half of the trading session remained unsteady, with investors staying cautious ahead of the inflation data within the country and the US. The statement of the US President Joe Biden that his country wouldn’t slip into recession, and even if there is an incidence of economic downturn it would be slightest.
The economists globally concur that the US may escape the fury of the recession on the back of the robust exports of the defence goods for which there has been a massive spike in the demand in the European countries and also in Asia. The US defence goods exports may save the economy there from slipping into recession, which may bode well for India since Washington is the largest trading partner of the country.
HCL Technology and Wipro came out with their quarterly results, which broadly met the street expectations. There were spikes in the open interests of the IT stocks in Monday session, which were reflected in their gains on Wednesday. Axis Bank stayed on the firm course, continuing on its rise from the 755 levels to touch the 810 level on Wednesday. As stated earlier, the earnings of the private banks are expected to go up on account of the rise in the lending rates, which is translating in the firmness in the Bank Nifty.
Later in the evening in the key number for inflation and industrial productions came, which were both on the negatives sides. The US numbers also indicated that the inflation still remains firm. The market volatility is likely to stay in the next few days or even weeks.
The foreign institutional investors again had a net sell of Rs 542 crores, while the domestic institutional investors had a net buy of Rs 85 crores on Wednesday.
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