Stock market update: Nifty above 17,300, Sensex adds more than 1000 points; metal, auto, banking stocks shine
The Indian markets surged in the afternoon trade as benchmarks gained 2% despite US Fed rate hike
The Indian markets surged in the afternoon trade as benchmarks gained 2% despite US Fed rate hike. Experts are of the view that the markets had already factored in rate hike proposition. The blue-chip Nifty50 gained 1.9% to 17,300, while the Sensex rose by over 1100 points on Thursday in holiday-shortened week.
Broader Asian markets climbed, joining a rally in Wall Street, after the U.S. central bank increased rates by an expected quarter point while signalling equivalent hikes at every meeting for the rest of the year.
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Lower oil prices that allayed inflation fears, progress in the Russia-Ukraine talks, and more relaxations to COVID-19 curbs such as reopening of schools amid an expanded vaccination drive for children helped the Indian markets perform well this week.
Meanwhile, Nifty midcap and smallcap indices gained 1.3 % and 1.2% respectively as India VIX cooled down to 22-mark. All sectoral indices traded in the green with metal, consumer durables and banking & financial services leading the rally.
JSW Steel, HDFC Ltd, Titan, Eicher Motors, Tata Steel, Asian Paints, Tata Motors and Kotak bank gained the most, while IOC, ONGC, NTPC, HCL Tech, Cipla were among losers.
What should investors do in current scenario?
As stocks have corrected significantly and the markets have started to show signs of recovery, what should investors do with looming geopolitical risks?
"Last two years Investors made excellent returns by passively investing in direct equities. Almost all stocks are up from 40% to 500% since March 2020 lows. In era of de-globalisation, with inherent geo-political risks along with higher commodity prices, risk-averse investors may consider moving from direct equities to hybrid mutual funds with disciplined process to minimise possible risk to their gains made in the last two years," says Amit Jain CEO and Co-Founder of Ashika Wealth Management.
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