Mr. Vishal Wagh, Research Head, BONANZA PORTFOLIO LTD
Indian indices opened on a positive note today with the Nifty above 17,700. At the time of closing, Sensex ended up 508.51 points or 0.86% at 59,649.74 & Nifty up 170.40 points or 0.97% at 17,792.65.
During the day, India's central bank is using up its foreign exchange reserves at a quicker pace than during the taper-tantrum period of 2013 as it tries to prevent overshoot in the rupee, but a larger pool of reserves may allow it to support the currency for some more time. The Reserve Bank of India has sold a net of $38.8 billion from its forex reserves between January and July this year. A net of $19 billion was sold in July alone. Benchmark 10-year U.S. Treasury yields jumped to their highest level since 2011 on Monday as investors adjusted for the likelihood that the Federal Reserve will hike rates higher and for longer than previously expected as inflation remains near multi-decade highs.
Japan's core consumer inflation quickened to 2.8% in August, hitting its fastest annual pace in nearly eight years and exceeding the central bank's 2% target for a fifth straight month as price pressure from raw materials and yen weakness broadened. Sweden's central bank hiked interest rates by a full percentage point to 1.75% is a surprise move and warned that more was to come as it sought to get to grips with surging inflation. China kept its benchmark lending rates unchanged at a monthly fixing. Australia's central bank is set on raising interest rates again as it battles to contain red-hot inflation but sees a case for slowing the pace of hikes as rates approach more normal levels. On the sectoral front, all the indices end in green with the Pharma index up 3%.
Nifty 50 top gainers are Apollo hospital, Cipla, Sun Pharma, Eicher Motors & Dr. Reddy while Shree cement, Grasim, Nestle India, Power Grid & Coal India were among the top losers.