Domestic equity benchmark indexes opened Thursday after a severe slump in the previous session.
The previous session saw Sensex drop 709 points, weighed down by a selloff of heavyweight Reliance Industries shares.
Today’s markets will likely make cautious starts amid weak global cues. Traders will be worried as the Reserve Bank reported that India experienced a current balance deficit of 1.2 percent of GDP in 2021-22. This is in contrast to India’s surplus of 0.9 per cent in FY2020-21. This was due to a larger trade deficit,” stated Mohit Nigam Head – PMS, Hem Securities.
As the minutes of the meeting at the central bank showed, Shaktikanta Das, the RBI Governor, warned that high inflation continues to be a concern for the economy. She also voted for a 50 basis point increase in the key interest rate (or repo rate) to stop price rises.
Sensex reached 51,970.16 points at 9.24 a.m. This was an increase of 147.63 or 0.28 Percent, while nifty stood at 15,492.40, which was up 79.10 per cent or 0.51 Percent.
Apollo Hospitals, ONGC and UPL were the top five losers of morning session. Hero Motocorp, Bajaj Auto and Bharti Airtel were among the top five winners. Tata Motors, Tata Motors and Wipro were the top five gains, according to National Stock Exchange data.
Notably, domestic indexes had fallen during most of the sessions in June. The equity indices were also affected by the rupee’s depreciation.
“The sentiments have taken some damage amid deteriorating global economic prospects and as central banks look to aggressively fight against inflationary forces,” Sugandha Sachdeva (Vice President – Commodity and Currency Research, Religare Broking) said.
Sachdeva stated that the market participants will be watching Fed Chair Powell’s testimony to Congress over the next two days to see if the US central bank is ready to raise interest rates at its July meeting. He also said that the testimony will give further information to the Indian rupee.
Due to growing inflation fears, the rupee Indian currency fell to 78.29 US Dollar on Wednesday.