Stock Market India: Sensex rallies over 470 points, Nifty rises above the 17,000 mark
Indian equity benchmarks rallied on Wednesday ahead of key retail inflation data due later in the day, stalling a three-day losing streak, and defying a broad stocks rout on global recession risks from rising borrowing costs worldwide.
After both benchmarks crashed 1.5 per cent in a deep fag-end sell-off in the previous session, the BSE Sensex gained 478.59 points to end at 57,625.91, and the broader NSE Nifty index rose nearly 0.9 per cent, or 140.05 points, to reclaim the 17,100 level on Wednesday.
A fall in oil prices also helped sentiment for the Indian benchmarks.
“Bears took a breather today as markets witnessed a relief rally after getting hammered in the past few sessions. However, the recovery doesn’t seem to be sustainable as multiple negative factors are at play,” said Shrikant Chouhan, Head of Equity Research for Retail at Kotak Securities.
Those gains in domestic bourses stand in contrast to a deep fall in global stock markets.
On Wednesday, Asian markets slumped to two-year lows due to indications that China has no immediate plans to relax stringent COVID-19 restrictions put in place, while a relentless dollar rise and tremors in the UK bond market and pound roiled investor mood around the world.
After a turbulent overnight session, sterling recovered from a two-week low thanks to news that the Bank of England (BOE), which had previously alarmed markets by threatening to stop assistance this week, was willing to continue its bond-buying programme past Friday.
“Impromptu changes to U.K. economic policy leave more question marks than answers around credibility and are a headwind for GBP assets,” wrote Stephen Innes of SPI Asset Management, reported Reuters.
China’s CSI300 index sank 1.40 per cent, and Hong Kong’s Hang Seng index lost 2 per cent, both substantially pulled down MSCI’s broadest index of Asia-Pacific equities outside of Japan, which was down 0.50 per cent.
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