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Bulls Back on Dalal Street! Sensex Surges 1,564 pts, Nifty Tops 17,750; Bajaj Twins Jump 5% Each

By: Aparna Deb


Last Updated: August 30, 2022, 15:56 IST

New Delhi, India

Markets opened on an upbeat note on Tuesday morning

Markets opened on an upbeat note on Tuesday morning

Sensex Today: Indian markets opened in the green on Tuesday morning amid mixed global cues.

Sensex Today: Bulls fueled markets on Tuesday as frontline indices Nifty50 rose nearly 400 points to trade above 17,700 levels and the S&P BSE Sensex soared over 1,350 points to reclaim the 59,000 mark.

Broader markets, too, reflected similar resilience as Nifty Midcap 100 and Nifty Smallcap 100 surged over 1 per cent each. All sectors were in a sea of green with Nifty Auto and Nifty Realty indices rising over 2 per cent each.

Among individual stocks, shares of Ashok Leyland gained nearly 3 per cent after the automaker announced 6 new models for their LCV range.

VK Vijayakumar, chief investment strategist at Geojit Financial Services, said: “Compared to the sell-off in US markets last Friday, the correction in the Indian market yesterday was relatively mild. This is a reflection of the resilience of the Indian market.”

“However, it is important to appreciate the fact that valuations in India are high. Nifty is trading around 20 times forward earnings. MSCI India is trading at 100% premium to emerging market rivals. This calls for some caution. There is a possibility of further correction in the market in the near-term. Financials, capital goods, autos, telecom and FMCG are strong segments attracting investment,” Vijayakumar said.


The rupee recovered sharply on Tuesday to below 79.50 per dollar, after hitting a new all-time low by breaching the key psychological level 80-to-a-dollar in the previous session.

Hitesh Jain, Lead Analyst – Institutional Equities, Yes Securities on Indian Rupee, said: “Indian Rupee is flirting around 80 levels against the US dollar and is likely to scale further lower as Federal Reserve has proclaimed that the US monetary policy probably needs more tightening until inflation is under control. Although the central bank did not provide cues on the size of rate hikes in September and ensuing policy meetings, investors are paring back expectations that the Fed could tilt to a slower pace of rate hikes. For what it’s worth, the Fed funds futures market is now assigning a 70% probability to a 75-basis point rate increase in September. On the INR outlook, it seems the path of least resistance is on the downside. Having said that, USD/INR will likely inch towards the 81 mark but we do not see a major downside as RBI remains committed to preserving the INR in a confined range. Needless to mention, RBI’s war chest in terms of adequate FX reserves to counter the volatility in INR.  Also, FII flows into Equities remain positive, while markets will derive courage from an imminent possibility of the inclusion of Indian Bonds in Global Indices.”

Global Cues

Asian markets were mixed Tuesday with confidence at a premium as traders contemplate the prospect of more Federal Reserve interest rate hikes and a possible recession.

Tokyo stocks opened higher on Tuesday, rebounding from sharp sell-offs in the previous session following US Fed chief Jerome Powell’s pledge to “forcefully” battle inflation. The benchmark Nikkei 225 index was up 0.63 per cent, or 176.57 points, at 28,055.53 yen in early trade, while the broader Topix index was up 0.58 per cent, or 11.31 points, at 1,955.41.

US stocks closed lower on Monday, adding to last week’s sharp losses on nagging concerns about the Federal Reserve’s determination to aggressively hike interest rates to fight inflation even as the economy slows.

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first published:August 30, 2022, 09:19 IST
last updated:August 30, 2022, 15:56 IST