Indian shares rally as recession fears ease

Indian equities opened higher on Wednesday, mirroring a positive trend in Asian markets. Investors appeared to be reassessing concerns over a potential US recession, leading to a rebound from recent losses.

The benchmark Nifty 50 index climbed 0.96 per cent to 24,225.85, while the Sensex gained 0.82 per cent to 79,247.64 by 9:50 AM IST.

“The market is showing signs of recovery after three sessions of losses,” said Prashanth Tapse, senior vice president of research at Mehta Equities.

Both key indexes also started the previous session with a one per cent increase before profits were taken by traders, leading to a reversal of gains. All 13 major sectors saw increases on that day.

The realty index surged by 1.5 per cent following the Indian government’s offer to taxpayers to choose between the new tax rate or the previous 20 per cent rate adjusted for inflation, as per a government document viewed by Reuters.

Among individual stocks, drug maker Lupin soared four per cent after reporting better-than-expected net profit for the June quarter.

Oil and Natural Gas Corporation (ONGC) rose 6.2 per cent as analysts highlighted sustained earnings momentum and attractive valuations as key growth drivers. ONGC had previously announced a strong quarterly profit.

Conversely, Gland Pharma experienced a three per cent decline after reporting an unexpected profit fall attributed to higher employee costs and reduced product prices in the US.

Asian markets opened in positive territory, with the MSCI Asia ex-Japan index rising 1.8 per cent and Japan’s Nikkei 225 adding 2.3 per cent.

This upward trend followed a rebound in US equities overnight, as comments from Federal Reserve officials alleviated fears of an impending recession.

Attribution: Reuters