Sensex Rises Over 230 Points, Tracking A Modest Recovery In Global Stocks

Indian equity benchmarks rose in early trade on Wednesday, after recovering some of their steep losses toward the end of close in the previous session, tracking a modest turnaround on Wall Street, which overnight ended a losing streak of four sessions even as recession fears persist.

The BSE Sensex index rose 233.34 points to 61,935.63 in early trade, and the NSE Nifty index opened in the green, reflecting the improved sentiment in Asian indexes.

Global markets were stunned after the Bank of Japan (BOJ) unexpectedly opted to allow long-term rates to swing 50 basis points each side of its 0 per cent target on Tuesday, rather than the previously announced 25 basis point range, even as the central bank maintained its current broad policy stance.

After Tuesday’s decline brought on by Japan’s unexpected policy review, Asian markets recovered.

Wall Street stocks ended a four-day sell-off and posted gains on Tuesday ahead of important macroeconomic data due later this week, such as third-quarter GDP numbers, housing starts, consumer spending, and inflation, which may provide hints about the Fed’s future policy course.

“Early optimism is seen as key benchmark indices are likely to start on a firm note…and other Asian gauges following overnight recovery in the US markets,” said Prashanth Tapse, Senior Vice President for Research at Mehta Equities.

“Local traders would be eyeing the minutes of the recently concluded RBI’s monetary policy meeting set to be released later today. The minutes will throw some light on the reasons behind undertaking the previous rate hike and indication of what could be in store going ahead with regards to RBI’s rate setting decision,” he added.