Indian stock markets opened higher following a relief rally in Asian markets as US central bank officials eased investor concerns. After a fierce sell-off on Monday, the NSE Nifty 50 index rose 1.11% to 24,329.85 at 9:17 am IST, while the S&P BSE Sensex rose 1.2% to 79,743.87.
On Monday, the Nifty 50 and the S&P BSE Sensex had recorded their worst session in two months, a result of a global sell-off triggered by fears of a US recession. Asian markets tried to recover from the decline, with the MSCI Asia ex-Japan index rising 1.7%. Wall Street stocks, on the other hand, suffered losses overnight.
Strong services sector data in the US on Monday eased some concerns, while key Federal Reserve officials did not consider Friday’s weak labor market data as a sign of a recession, improving investor sentiment.
All 13 major sectors recorded gains. Small and mid-capitalisation stocks rose nearly 2%. ONGC rose 3.7% after it beat first quarter profit estimates on strong fuel demand, making it the top Nifty 50 gainer.
Besides, Bharti Airtel shares rose 1.5% after the telecom service provider beat June quarter profit estimates.
Amid this positive trend, investors have been eyeing a relief rally in Asian markets. Japan’s Nikkei 225 index rose 8.86% or 2,786.55 points to 34,244.97, while the Kospi added 4.30% or 104.88 points to 2,546.43.
The Indian stock market has moved in a positive direction in tandem with Asian markets, boosting investor sentiment. It will be interesting to see if this trend continues, especially as the global economic situation changes.
