Sensex Jumps 350 Points on Bet on Fed Slowing Rate Hikes

Picture Source: Internet

Indian shares rose on Thursday, and global stock indexes rose for a fifth straight day on positive signs that the central bank may be reducing the intensity of aggressive monetary policy.

The BSE Sensex returned from Wednesday’s Diwali celebrations, up 354.43 points or 0.6% to 59,898.39, while the broader NSE Nifty gained 114.50 points or 0.65% to 17,770.85.

India’s stock market benchmark posted a seven-day winning streak, including gains on Monday in the one-hour Muhurat trading window that began in Hindu Samvat year 2079, before falling on Tuesday.

This week, the Indian stock market was closed on Wednesday and only opened during the one-hour Muhurat session on Monday.

In early Asian trade on Thursday, gains in domestic stocks were likely to be modest as global oil prices rose more than 3% to session highs as US crude shipments hit a record high.

India is the world’s third-largest oil importer and consumer. Rising crude oil prices directly affect inflation and drag down capital inflows.

Asian shares rose, with global stock indexes rising for the fifth day in a row, their longest gain in more than two months.

While Meta Platforms shares fell 24% in after-hours trading overnight, US futures rose in early Asian trade.
The S&P 500 ended lower on Wednesday as shares of the parent companies of Facebook, Amazon, Alphabet and Microsoft fell as investors worried about tech profits.

But gains in the dollar have been capped as fears have subsided. Investors increasingly believe the Federal Reserve and other central banks may scale back their aggressive rate-raising strategies.

Despite the challenges for stock market investors, central banks are encouraging signs that a less dramatic monetary tightening is likely.

On Wednesday, the Bank of Canada raised interest rates less than expected, supporting the theory that the Federal Reserve is also on the verge of cutting rates.

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