Markets defy expectations: Sensex rises 500 points, Nifty tops 17,100; Rupee tests 80 vs dollar

Sensex rallies 619.27 points to 57,477.06 in early trade; Nifty advances 189.15 points to 17,118.75

AgenciesUpdated: Friday, July 29, 2022, 09:51 AM IST
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On Friday, recessionary data in the US was completely ignored by Indian equity markets, at least in the opening session, taking their cue on Friday from a late rally on Wall Street, as markets focused on a possible slowdown in the pace of rate hikes rather than a US recession after data showed its economy shrinking for a second straight quarter.

Markets seem to have ignored the technical recession in the US - GDP contracting for 2 consecutive quarters- and are pinning more faith on the resilience of the economy as reflected in very low unemployment of 3.6% and job vacancies at historical highs.

Additionally, the Fed chief's observations yesterday indicate that the Fed is likely to slow down rate hikes after one more large hike in September.

Earlier, Nifty futures on the Singapore Exchange traded 185.5 points, or 1.09 per cent, higher at 17,132.50; a sure sign that Dalal Street was headed for a positive start on Friday.

However, in a blow to consumers, the Indian rupee strengthened to its highest in nearly three weeks on Friday, tracking broad losses in the dollar on easing concerns over the need for continued aggressive interest rate hikes by the U.S. Federal Reserve.

The partially convertible rupee was trading at 79.40/41 to the dollar by 0345 GMT, from Thursday's close of 79.7550. In early trade it rose to a high of 79.3925, its strongest since July 11.

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