NEW DELHI: Morale on Dalal Street was high on Tuesday as clouds of sooner-than-expected rate hike waned. PSU banks continued to be in demand, while metal stocks also supported benchmark indices.
Market commentators believe the US Fed rate hikes are the biggest risk for the domestic market in the next two years and recent flip flops on the future trajectory by the Fed officials has kept investors on the edge.
“US markets rallied on Monday, with the Dow completing its strongest session in over three months. Immediate support and resistance for Nifty50 are 15,500 and 15,900, respectively. We expect the markets to be volatile for a few more sessions but with limited downside,” said Mohit Nigam, Head, PMS – Hem Securities.
How are the bluechips doing?
After opening in the green, benchmark indices maintained their lead. At 9.37 am, BSE flagship Sensex was up 381 points or 0.73 per cent to 52,955.67. NSE benchmark Nifty climbed 116 points or 0.74 per cent to 15,863.25.
In the 50-share pack Nifty,
was the biggest gainer, up 2.85 per cent. Suzuki, ONGC, UPL, Tata Motors, Titan, IndusInd Bank, M&M, HDFC and Tata Steel were among other gainers.
India was the top loser in the pack, down 0.39 per cent. Britannia Industries, Bajaj Auto, HDFC Life Insurance, HUL, HCL Tech, Cipla and Tech Mahindra were other losers in the pack.
FACTORS DRIVING MARKETS
Good news
Fed flip flops: After inducing panic in the market on Monday, Fed officials including St. Louis Fed President James Bullard and Dallas Fed President Robert Kaplan toned down their hawkish rhetoric.
Dollar, bond yields fall: The dollar index retreated from two-month highs against its rivals, making emerging markets attractive. The benchmark 10-year yield also held below 1.50 per cent, doubling the effect.
Bad news
Crude oil worries: BofA Global Research raised its Brent crude price forecasts for this year and next, saying that tighter oil supply and demand balances in 2022 could push oil briefly to $100 per barrel. Any rise in crude prices is negative for Indian economy.
Broader markets
Broader market indices were trading higher, outperforming their headline peers in morning trade. Nifty Smallcap was up 0.90 per cent, while Nifty Midcap rose 0.85 per cent. Broadest index on NSE, Nifty 500 advanced 0.62 per cent.
Adani Total Gas, Gujarat Gas, Indiabulls Housing Finance, PNB Housing Finance, Future Retail and Karur Vysya Bank were gainers from the space, while Quess Corps, Westlife Developments, Strides Pharma, Oil India, GMR Infra and Coromandel International were under selling pressure.
Global markets
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.35 per cent, moving above Monday’s four-week lows and notching a 4 per cent gain so far this year.
Japanese shares led the way, with the Nikkei advancing 2.1 per cent. South Korea stocks rose 0.4 per cent, Australia was up 1.2 per cent and Chinese stocks advanced 0.6 per cent
Overnight, Wall Street was led higher by shares of banks and energy firms. The Dow Jones Industrial Average rose 1.76 per cent, the S&P 500 gained 1.40 per cent and the Nasdaq Composite added 0.79 per cent.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsBit.us is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
