23.9 C
Madrid
Sunday, October 2, 2022

Indian Shares Rise on Tech Rally, Investors Await for Inflation Data

This week, investors will closely monitor domestic and American inflation statistics

Must read

Sadaf Hasan
Sadaf Hasan
Aspiring reporter covering trending topics

INDIA: Technology stocks helped Indian markets rise for a third straight session on Monday as investors awaited domestic inflation data for clues on the rate at which the central bank may raise interest rates.

The S&P BSE Sensex (.BSESN) increased 0.7% to 60,211.71, and the NSE Nifty 50 index (.NSEI) increased 0.7% to 17,957.55 with the majority of its critical sub-indices in the green.

- Advertisement -

The IT index for the Nifty (.NIFTYIT) increased by as much as 2% to reach a three-week high. On the benchmark Nifty 50, Infosys Ltd (INFY.NS) and Tech Mahindra Ltd (TEML.NS) saw the most significant gains, rising 1.8% and 2%, respectively.

Gains were supported by a drop in oil prices globally. India, the third-largest oil importer in the world, gains from a decrease in prices since it lowers imported inflation.

- Advertisement -

The likelihood of more interest rate increases in the US and Europe, as well as concerns about demand in the wake of China’s implementation of COVID-19 limitations, caused crude prices to decline.

Neeraj Dewan, director at Quantum Securities, said that the overall mood has been upbeat because oil prices have decreased, which bodes well for our market and has been good for global markets.

- Advertisement -

This week, investors will closely monitor domestic and American inflation statistics to look for clues as to whether or not inflation has peaked or reduced, according to Dewan.

According to Dewan, markets anticipate a rate increase of 75 basis points from the U.S. Federal Reserve but not consecutive rate increases.

In August, food prices likely spiked, breaking a three-month downward trend in India’s retail inflation, according to economists surveyed by Reuters. This likely increases the likelihood that the Reserve Bank of India will raise interest rates aggressively later in the day after the market closes.

In the meantime, after reporting that a fire event at a company left four people dead and 20 injured, shares of chemicals manufacturer Anupam Rasayan dropped as much as 4.9% to a more than two-week low on the stock exchange.

Also Read: After an Interest Rate Warning, US Stock Markets Fell

Author

- Advertisement -

Archives

- Advertisement -

Trending Today