Today can prove to be a good day of the week for the domestic stock market. Global investors have heaved a sigh of relief after the Bank of Japan gave assurance on interest rates and this is having a good effect on stock markets around the world. Asian markets are showing recovery in Wednesday’s trading.
Great recovery in Asian markets
Japan’s major stock index Nikkei 225 is up more than 2 percent in today’s trading. In the morning, this index was trading near 35,500 points with a great gain of 2.33 percent. The Topix index was also trading with a gain of 0.3 percent. South Korea’s Kospi was up 1 percent, while Kosdaq jumped 1.3 percent. Similarly, Hong Kong’s Hang Seng was showing signs of starting trading with a gain of more than 1 percent.
Nifty futures rose this much
The domestic market can get the benefit of the support received from the Asian markets in today’s trading. Before the market opened in the morning, the Nifty50 futures in Gifty City were up by 283 points (1.18 percent) and were trading at 24,328 points.
This much loss was incurred on Tuesday
Earlier on Tuesday, the trend of decline continued in the domestic market. On the second day of trading of the week, the Sensex closed at 78,593.07 points with a loss of 166.33 points (0.21 percent). On the other hand, the NSE’s Nifty50 index was at 23,992.55 points with a loss of 63.05 points (0.26 percent). Before that, on the first day of the week, Monday, there was a sell-off all around in the domestic market and the market closed with a huge loss.
Bank of Japan gave this assurance
The reason for the recovery seen in the market today is the assurance given by the Bank of Japan on interest rates. The Deputy Director of the Bank of Japan has said that interest rates will not be increased in case the market remains unstable. He said that there is a need to soften them for some time. Earlier, the Japanese Central Bank had announced to increase interest rates after a long time, which affected the investors’ sentiment. At the same time, the market was also facing problems due to the fear of recession in America.
US market returns to boom
The return of boom in the US market can also help the domestic market. On Tuesday, the Dow Jones Industrial Average on Wall Street was in profit of about 300 points (0.76 percent). Similarly, the S&P 500 index rose by 1.04 percent and the Nasdaq Composite index rose by 1.03 percent.
Read this also: After a spectacular rally, the Indian market lost all gains; Sensex closed down 1100 and Nifty 300 points from the day’s high.
