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Thursday, June 8, 2023

Sensex rose more than 300 points on the Wall Street rally, but it fell each month

In response to a rally on Wall Street, Indian benchmark shares gained ground on Friday. Robust earnings reports offset negative economic statistics from the United States, although they were still on course to post a monthly loss.

Even though global markets have experienced significant ups and downs, traders are still concerned about the consequences of the Russia-Ukraine crisis on the global economy, the demand impact of severe lockdowns in China, and the possibility of stagflation in various parts of the globe.

In the first hour of trading on Friday, the 30-share BSE Sensex index surged more than 300 points to around 57,800, while the broader NSE Nifty index rose almost 80 points to approximately 17,300. Both indices were predicted to finish the month of April lower.

For the fourth day in a row, Reliance Industries Ltd (RIL) saw its stock price rise 1.3 percent, reaching a new all-time high of 2,856.15 rupees.

All of the Nifty’s sub-indices were green, but the Pharma sub-index led the way with a 2 percent increase.

The stock of Varroc Engineering increased by 20% after the auto components firm announced that it would sell its 4-wheeler lighting systems operations in the Americas and Europe to a third party. This move pushed the stock to its highest level since January 2020.

Preliminary results for Wipro and Maruti Suzuki India are anticipated next month, and both companies’ stocks increased 1.1 percent and 0.7 percent, respectively, before the results.

NSE Nifty climbed 1.2% to 17,245 on Thursday, after losing 1.1% the day before, while the Bombay Stock Exchange gained 700 points to 57,521.

On Monday morning, the Sensex and the Nifty indexes had fallen by more than 1%. On Tuesday, both indexes had gained more than 800 points, bringing them to approximately 57,356, while the Nifty had gained nearly 1.5 percent, bringing it to approximately 17,200.

Fears about Chinese growth and the possibility of interest rate increases in the United States hindered Asian markets from making significant gains on Friday. Still, the dollar climbed to two-decade highs as a safe-haven asset.

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