look news india
After the huge fall and selling pressure of the last few days, a strong rebound has been seen in the Asian stock markets today. There has been a big improvement in the market sentiment of investors due to the sudden rise in the shares of major tech and semiconductor (chipmaker) companies in the global markets. South Korea’s benchmark indices performed best in this trading session. KOSPI Which jumped by about 3 percent (an increase of about 2.5% to 3%). Apart from this, the pressure and slight softening of crude oil prices in the international market has also supported the Asian stock markets. From a reporter’s perspective, this recovery is breathing new life into the tech sector.
Rise in KOSPI and heavy buying in tech stocks
The main reason for this rise in Asian markets is the heavy buying in shares of the world’s leading semiconductor and AI-linked (AI) companies:
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South Korea (KOSPI): Kospi index jumped close to 3% due to strong gains in shares of leading chipmaker companies like Samsung Electronics and SK Hynix. Recently, there was heavy selling in these stocks due to fears of AI bubble, but value buying has started again at lower levels.
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Japan and Taiwan: Japan’s Nikkei (Nikkei 225) and Taiwan’s Taipei (TAIEX) indices are also trading strongly in the green. The market has gained strength due to the rise in shares of Taiwan’s leading chip manufacturing company TSMC.
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China and Hong Kong: Hong Kong’s Hang Seng and China’s Shanghai Composite Index also recovered from the sluggish start and managed to rise.
Relief from pressure on crude oil prices
Crude oil movement has also played an important role in the recovery of stock markets:
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Softening in Brent crude: Brent crude, which recently crossed the level of $90 per barrel in the international market, has slowed down a bit today and has registered a decline of about 0.5% to 1%.
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Inflation and bond yield concerns: Despite tensions in the Middle East, crude oil remains under pressure on concerns of slowing global demand. Due to cheap oil, the risk of inflation for Asian countries (especially big importers like India) has reduced slightly, which has increased the morale of investors.
What will be the impact on Indian stock market (Sensex & Nifty)?
The direct impact of these strong and positive signals from Asian markets can be seen on the Indian stock market as well. After the ups and downs in the last few sessions, today Sensex (BSE Sensex) and Nifty (NSE Nifty 50) are expected to start with a green mark. This boom in IT sector and tech stocks can also act as a catalyst for Indian IT giants (like TCS, Infosys and Wipro). However, market experts believe that investors will keep a close eye on the corporate results of the current quarter (Q1 Results) and geopolitical updates.