Asia’s Shares Rise After Tech-Driven Surge in US Benchmarks; Investors Await Inflation Data
On Tuesday, May 14, the Sensex and the Nifty 50 closed in positive territory for the third consecutive session amidst mixed global cues. The market benchmarks have been on the rise this week following a nearly 2% decline the previous week, with some relief on the valuation front. The high prospects for India’s economic development indicate a strong medium- to long-term forecast for the Indian stock market.
The BSE Sensex closed at 73,104.61, up by 328.48 points or 0.45%, while the Nifty 50 rose by 113.80 points or 0.51% to settle at 22,217.85. Vinod Nair, Head of Research at Geojit Financial Services, noted that with favorable cues from Asian markets and a drop in India’s CPI, the local market continues its recovery path from recent lows, although volatility and range-bound trading are expected to persist.
Asian markets saw a rise in stocks following a significant tech-driven surge in US benchmarks, with investors eagerly awaiting key inflation data later on Wednesday to gauge the Federal Reserve’s next move. However, financial markets in South Korea and Hong Kong remained closed on Wednesday due to public holidays.
The trends on Gift Nifty also indicate a positive start for the Indian benchmark index, trading around 22,370.50 level, a premium of 58.5 points from the Nifty futures’ previous close. In the US, Wall Street stocks rose on Tuesday despite data showing April wholesale inflation above forecasts, with the Nasdaq closing at an all-time high.
US producer prices rose more than anticipated in April, indicating persistently high inflation early in the second quarter. Bond yields fell slightly, and the dollar trailed the euro in the currency market as traders remained cautious ahead of the CPI report. The dollar index was last at 105.01, with the yen hitting a two-week low against the dollar.
Overall, the global market cues suggest a positive outlook for the Indian stock market, with investors closely monitoring inflation data and the Federal Reserve’s next steps. Stay tuned for more updates on Live Mint for the latest business news, market updates, and breaking news events. Download The Mint News App for daily market updates.
