Market Wrap: Sensex, Nifty extend gains into second consecutive day; investors earn nearly ₹3 lakh crore in a day
US Federal Reserve may not hike rates in September following a jump in the US unemployment rate in August. “Data on Friday showed US job growth picked up in August, but the unemployment rate jumped to 3.8 per cent, while wage gains moderated. The economy created 110,000 fewer jobs than previously reported in June and July," reported Reuters.
Recent macro data have shown inflation is easing and labour market is cooling in the US. This indicates the US economy is set for a soft landing. As per Reuters, CME FedWatch tool showed that markets are pricing in a 93 per cent chance of the Fed holding steady on rates this month, and over a 60 per cent probability of no more hikes this year.
Domestically, economic growth outlook remains strong, giving hopes that the market will continue to see bullish sentiment in the medium term. As reported by media, after Moody’s Investors Service raised growth forecast for India’s economy for the calendar year 2023 from 5.5 per cent to 6.7 per cent, Morgan Stanley increased its projection for India's growth to 6.4 per cent, up from the previous estimate of 6.2 per cent for the financial year 2023-2024. Deutsche Bank raised its growth forecast for India by 20 basis points to 6.2 percent for the year while Nomura raised its 2023 GDP growth projection to 6.3 per cent from 5.9 per cent previously.
Equity barometer the Sensex opened 139 points higher at 65,525.91 against the previous close of 65,387.16 and rose 297 points to hit the intraday high of 65,683.91. The Nifty50 hit the intraday high of 19,545.15. Sensex closed 241 points, or 0.37 per cent, higher at 65,628.14 while the Nifty closed the day with a gain of 94 points, or 0.48 per cent, at 19,528.80.
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