India's Nifty 50 and BSE Sensex extended their rally on October 15, each ending about 2% higher. The gains came while other Asian markets fell on AI stock speculation and U.S. rate concerns. Analysts added that unless the Iran-U.S. conflict remains unresolved and crude continues to trade above $100 per barrel, a sustained rally may be unlikely.
The Sensex ended 1533 points up at 74,315, while the Nifty 50 closed at 22,997, up 374.65 points or 1.6%.
Indian stocks defy weaker Asian markets
The Indian market continued its 3-day rally while other Asian markets fell on speculation around AI stocks and concerns about U.S. inflation and a potential rate hike by the U.S. Federal Reserve.
V. K. Vijayakumar, chief investment strategist at Geojit Investments, said the global AI deceleration, positive corporate earnings in banking and anticipation of a further Fed hike were "a blessing in disguise for Indian markets".
However, analysts added that a sustained rally may be unlikely unless the Iran-U.S. conflict remains unresolved and crude continues to trade above $100 per barrel.
Rupee gains for a fourth straight day
The rupee strengthened for the fourth consecutive trading day after measures from the Reserve Bank of India, a weaker dollar index and a fall in crude oil prices. It closed at 95.5 against the greenback, up 0.1%, and has risen 2% so far this week.
The dollar index stood at 102.10, down 0.4%, as U.S. treasury yields declined and worries grew over a further Fed rate hike this month.
Brent crude traded at $103.78 per barrel, down 2% from the previous close, on expectations of higher oil supplies if the U.S. eases sanctions on certain tanker operations.
Anil Kumar Bhansali of Finrex Treasury Advisors LLP said in a note that the Fairfax deal will bring in about $6-7 billion of flows. He expects flows from the Jio IPO to hit the market from tomorrow or Monday, taking the rupee to the upward territory of 94-94.50.
Source: The Hindu
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