Indian stock benchmarks showed hefty gains during Muhurat trading hour on Monday to mark the start of the Hindu Samvat year 2079, with investors placing bets on the exchange systems available between 6:15pm and 7:15pm, echoing their predictions of which ones. stocks would be profitable and beneficial .
The 30-share BSE Sensex index rose more than 500 points, and the broader NSE Nifty-50 index rose nearly 1 percent.
Both stock benchmarks rose Friday to boost earnings for the sixth straight session, braving the sell-off of broader global risk assets.
In global markets, British bonds rose after Rishi Sunak became Britain’s new prime minister after Penny Mordaunt pulled out of the race on Monday.
Investors expect Mr Sunak to restore credibility to economic policy-making and help calm the country’s troubled markets.
Global equities were mixed on Monday, with developed market equities rising and emerging market equities falling, mainly due to a significant sell-off in China.
Chinese blue-chip stocks fell about 3 percent. By comparison, Hong Kong’s shares fell 6.4 percent, the highest in one day since the financial crisis, following Xi Jinping’s record-breaking third term as president and the election of a top governing body with his supporters.
“Market sentiment could remain cautious regarding China in the near term, amid concerns about a shift in focus towards greater state control versus a market-driven approach under the new leadership team,” Xiaojia Zhi, the Chief China Economist at Credit Agricole CIB, said. to Bloomberg. “The way out of zero-Covid is not yet clear.”
Chinese economic data delayed last week and released Monday showed a mixed recovery, with unemployment rising and retail sales weakening despite accelerating growth.
On Monday, news that the Federal Reserve was debating when to cut rates and perhaps announce a step back at its November meeting helped significantly extend the recovery that had begun late Friday on Wall Street.
According to Fed policymakers Mary Daly of the San Francisco Fed and James Bullard of the St. Louis Fed, the pace of tightening will be the main topic of discussion in all policy decisions made at the November meeting.
“What this means for markets is that rates and currency markets may now become more sensitive to incoming economic data and some evidence of stress in the financial markets,” Derek Halpenny, head of research at MUFG, told Reuters.
The STOXX 600 rose on the day as European indices advanced on a week dominated by gains.
As investors await the upcoming earnings round of some of the world’s largest companies, US futures soared. Treasury yields fell, but the dollar rose.
Investors’ attention this week will be split between the direction of US interest rates and the profits of mega-cap tech companies, which are one of the main drivers of S&P 500 earnings growth.
This week, the focus of investors would be on the earnings of the top five tech companies by revenue — Apple, Microsoft, Alphabet, Amazon and Meta Platforms — which are expected to record the biggest drop in profitability in three years, according to data from Bloomberg.
“Obviously, demand is slowing down, but so far we’ve seen a lot of technology like software, where cloud computing is still quite resilient,” said Laura Cooper, Senior Investment Strategist at BlackRock International, on Bloomberg TV.
“We’ll be watching for signs of cracks that could put a dent in some of these earnings expectations.”