Shares of new-age technology companies listed in India jumped in line with their peers in the US as traders bet that the end is in sight for interest rate hikes by the US Federal Reserve following better-than-expected inflation print for October.
The US inflation rate slowed down to 7.7 percent in October as against an expectation of 7.9 percent in another sign that multi-decade-high inflation in the US shows signs of tapering off. Core CPI inflation in the US for October, too, came in at 6.3 percent as against an estimate of 6.5 percent. Traders are now expecting the US Fed to bring down the quantum of its interest rate hikes in the next monetary policy meeting while betting that the central bank will pause the rate increases by March 2023. US stocks, particularly those of technology companies, soared on the back of the October inflation print on hopes that the US Federal Reserve may soon pause on interest rate hikes and may start pulling rates lower in the second half of 2023 because of a likely recession. The NASDAQ Technology Index soared over 6 percent on November 10 following the inflation data. Back home, investors bought into shares of Zomato, Paytm, PB Fintech, Paytm, and Nykaa in the hope that future fall in interest rates will spur an upswing in their valuations. Interest rates in the economy have an inverse relationship with the valuations of technology stocks. Higher interest rates mean a lower present value of future cash flows of a technology company and vice versa. Bank Nifty Option Calls, Future & Option, Bank Nifty, Bank Nifty Options, Call Option, Equity Benchmark, Bank Nifty Option, Share Market Today, Share Market Today, Share Market Today,
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