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NEW DELHI: Domestic stocks recovered on Friday from a selloff in the previous session, as investors judged the recent selling as excessive. US stocks settled lower in overnight trade but investors were unfazed. Earlier today, China’s central bank announced cutting of five-year loan prime rate (LPR) — which many lenders base their mortgage rates — to 4.45 percent from 4.6 per cent.

On the other hand, Japan’s core consumer inflation in April exceeded a central bank target of 2 per cent for the first time in seven years, but due to rising import costs, not strong demand. The two Asian peers were up over 1 per cent each. Outperforming them, the BSE Sensex was trading 1,002.35 points or 1.90 per cent higher at 53,794.58 at 9.40 am. Nifty50 was trading at 16,131.40, up 322 points or 2.04 per cent. Midcap and smallcap indices rose 1.8 per cent each.

“Hidden positive divergence is seen in Nifty50’s daily RSI, where the RSI is making lower low and prices are making higher low, which is indicating a minor pullback on upside. The Nifty50 would be out of the woods only above the 16,400-mark, which stands near 23.6 Fibonacci retracement of the recent fall,” YES Securities said.

surged 3.62 per cent to Rs 1,163. Dr Reddy’s Labs jumped 3.38 per cent to Rs 4,060. Morgan Stanley said the drug maker continued to deliver granular growth and that the growth trend should continue in FY23. DRL continues to invest in complex generics, biosimilars, it said, adding that the stock is available at reasonable valuations, which drove its overweight stance on the scrip.

IndusInd Bank,

, , , and climbed up to 3 per cent. , , , Bharti Airtel, L&T and rose over 2 per cent each. None of the Sensex stocks were trading in the red.

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() rose 2.3 per cent to Rs 567 ahead of its quarterly earnings. fell 3.3 per cent to Rs 768.80.

Morgan Stanley has maintained ‘underweight’ on as Q4 earnings missed consensus estimates on margin front. The performance was weak in international business while the near term weak earnings outlook is the key negatives, it said while suggesting a target of Rs 700 on the stock.

“The excessive volatility in the market is broadly due to two reasons. One, the market has discounted severe monetary tightening by the Fed, which is likely to take the Fed funds rate to around 3 per cent in 2023. Two, the market has not fully discounted the probability of the US economy slipping into recession in 2023. Till there is clarity on the second issue, the ‘risk-off, risk-on mode’ in the market is likely to continue in the near-term,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.


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