Asian markets were trading higher after US stocks recouped most of the losses late in the day. Sentiment, however, remained fragile after CPI inflation for April topped economists’ estimates.
As of 9:21 a.m., the BSE Sensex traded 442 points up 0.84% at 53,372.36. Nifty50 was trading at 15,967.45, up 159.45 points or 1.01%. Mid and small cap indices rose 1.8%.
“These are not easy markets to trade. You have to be very careful and focus more on managing risk rather than seeking profits,” YES Securities said, adding that a short-term bounce was due in due to the daily oversold Relative Strength Index (RSI). graphics.
Among Sensex shares, Sun Pharma jumped 3.4% to Rs 879.10 after the drugmaker received final approval from the US health regulator for mesalamine extended-release capsules, used to treat intestinal diseases, in the American market.
Titan Company advanced 2.28% to Rs 2,095.20. Tata Steel and Bajaj Finance gained more than 2%.
Dr Reddy’s Labs, Bajaj Finserv, M&M, SBI and IndusInd Bank rose 2%.
Tata Motors jumped 6.4% to Rs 395.95. The local auto major reported a narrowing in consolidated net loss to Rs 992.05 crore in the fourth quarter ended March 31.
Losers included NTPC, Bharti Airtel, L&T and TCS, which fell as much as 1%. Larsen & Toubro fell after the company reported a 10% growth in its consolidated net profit to Rs 3,620.69 crore for the quarter ended March 2022.
Data released on Thursday showed the CPI jumped to 7.8% in April from 7% in March, above expectations, reflecting a general rise in food, fuel and basic inflation, and a higher than expected jump from the fuel basket.
CPI inflation rose to 7.8% in April from 7% in March, better than expected, reflecting a general rise in food, fuel and core inflation.
“We now expect CPI inflation to average 7.2% in FY23. This suggests inflation will hover around 7% for most of the year, reaching 8% in August-September, due to a low basis We continue to expect further anticipated rate hikes: 35 basis points in June, followed by 50 basis points in August and 25 basis points basis in subsequent meetings until April 2023,” Nomura India said in a note.
SBI, Tech Mahindra, Eicher Motors, HAL, Bank of Baroda, Bandhan Bank, Balkrishna Industries, Alkem Laboratories, Linde India, REC, APL Apollo Tubes, CESC, Nazara Technologies and Emami are among the companies to announce results today.
Globally, most Asian markets opened higher, with the MSCI Asia Pacific ex-Japan equity index rising 1.02%. Japan’s Nikkei jumped 2.4%; The South Korean Kospi advanced 1.66%; Hong Kong’s Hang Seng climbed 1.58% while China’s Shanghai Composite rose 0.65%.