Stock markets inch close to 52-week highs as US inflation data cools
- Sensex gained 1,000 points to 60,617 while Nifty50 rose by 290 points to 18,313 in early trade on Friday.
- Five tech majors Infosys, HCL Tech, Wipro, Tech Mahindra and TCS were amongst the top gainers in the first hour of trade.
- Earlier on Thursday, US inflation moderated to 7.7%, sending the US stock markets rallying.
AdvertisementIndia’s benchmark indices Nifty50 and Sensex rallied in early trade, on Friday tracking a global rally. This was after US inflation moderated in October at 7.7%.
As of 9:50 a.m, Nifty50 rose 290 points to 18,313, inching close to its 52-week high of 18,350 points. Sensex too gained 1,000 points to cross 61,600 and inch close to its 52-week high of 61,677 points.
“US stock markets ended on a positive side on Thursday as investors reacted to the inflation data which comes below expectations that indicate the Federal Reserve might become less aggressive with interest rate hikes,” said Mohit Nigam, fund manager & head - PMS, Hem Securities.
A moderation in US inflation to 7.7% in October from 8.2% in September led to the biggest rally in US markets in two years. While the S&P 500 closed with gains of 5.5% on Thursday, Dow Jones rallied 1,200 points to close up by 3.7%.
Asian markets reacted positively too, with Japan’s Nikkei 225 gaining 2.8%, Hong Kong’s Hang Seng gaining 5.5%, South Korea’s KOSPI gaining 3.1%, and China’s Shanghai Composite gaining 1.5%.
On the other hand, the crypto crash continued after the near-collapse of FTX, with analysts at JP Morgan suggesting that this could cause an industry meltdown.
The top five gainers of the markets were all from the IT sector in the first hour of trade today.
|Top gainers||Change||Top losers||Change|
|HCL Tech||4.14%||Dr. Reddy's Labs||-0.61%|
Source: NSE, as at 9:50 a.m., November 11, 2022
Brent crude continued to track gains, inching up 0.34% to $93.99 per barrel after moderation in US inflation.
Amongst the companies announcing their results today are Mahindra & Mahindra, Life Insurance Corporation of India, Adani Power, Delhivery, BHEL, Easy Trip Planners, Zee Entertainment, Sun TV and Glenmark Pharma.
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