The Indian equities scaled new heights on Monday as the BSE Sensex was at Rs 56,773, up 648.6 points, or 1.16 per cent. While the broader market Nifty50 rose to Rs 16,900. The US Fed chairman Jerome Powell’s dovish stance along with profit booking seems to have boosted market sentiment. In the broader markets, the BSE MidCap and SmallCap indices gained nearly 2 per cent each. Sectorally, the Nifty Metal index advanced 2.5 per cent, followed by the Nifty Realty, Pharma, and Bank indices. Powell, while speaking at the Jackson Hole Symposium hinted that the US central bank is not willing to quickly move towards raising rates. These words of Powell led to a sharp rally in the Indian stock market as well.
At 1429 hours, Bliss GVS Pharma, Apar Industries, Aster DM were the top gainers on the BSE, while Spice Jet, Sudarshan Chemical were among the laggards. On the NSE, Axis Bank , Tata Steel, ONGC were among the top performers while Infosys, Tech Mahindra, Eicher Motor, TCS were the losers.
In early trade, the market opened in the positive territory- thanks to the supportive global cues. The BSE Sensex was up 321.99 points or 0.57 per cent at 56,446.71, and the Nifty was up 103.30 points or 0.62 per cent at 16,808.50. About 1535 shares have advanced, 339 shares declined, and 107 shares are unchanged. At 0931 hours, Bharat Forge, Tinplate Company of India,, are the top gainers on BSE. While Spice jet, Mangalam Cement, Sudarshan Chemicals were among the laggards. On NSE, Hindalco, Tata Motors, M&M are the top performers while tech Mahindra, HCL Tech, TCS were among the losers. Sectorally, barring NiftyIT all indices opened in green. NiftyIT was down 0.11 per cent. However, Nifty Auto was the top performer and was up 1.49 per cent. On BSE, all indices were trading in the positive territory.
“Benchmark indices are expected to open on a positive note as suggested by trends on SGX Nifty. US markets closed higher on Friday and ended at record high levels after Fed Chairman Jerome Powell indicated that the central bank could begin tapering by year end but did not give a firm timeline. Asian markets were trading positive in the early Monday trade with Chinese markets up by 1.1 per cent. Stock specific actions can be witnessed in stocks such as Bharti Airtel (Plans to raise up to Rs 21,000 crore through a rights share issue), Cipla (University of Iceland sue Cipla to block Nayzilam copies), M&M (The Ministry of Defence has awarded a contract worth Rs 1,349.95 crore to Mahindra Defence Systems), Nazara Technologies (Acquired 100 per cent stake in Hyderabad-based skill gaming company OpenPlay Technologies). On the technical front; 16,650 and 16,900 are immediate support and resistance in Nifty 50,” Mohit Nigam, head-PMS at Hem Securities said.
However, on Monday, Asian markets also opened in the positive territory. Japan’s Nikkei rose 0.9 per cent soon after the bell, and MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.32 per cent in early trading before Chinese markets had opened. Australian markets opened in green, up 0. 39 per cent and similarly, Korea’s Kopsi was up 0.54 per cent. 0702 hour, Nifty Futures on the Singaporean Stock Exchange was trading in the red down -3.50 points, or 0.02 per cent at 16,821 signaling that the Indian markets are headed for a negative start today.
“The much-awaited Fed commentary after the Jackson Hole Symposium has indicated that “it would be appropriate to start reducing asset purchases this year.” But the Fed chief has hastened to add that there is much ground to cover before rate hikes. So, even though this can be treated as the beginning of normalization of the accommodative policy, the communication is smart enough not only to calm the markets but to enthuse it too. Consequently, the dollar index has slipped to below 93 and the risk-on in US markets has pushed the indices to record highs. This will enthuse the bulls in India to,” Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said.
However, on the other hand, Asian shares started the week with gains,
This week, all eyes will be on two domestic macro-economic data that are going to weigh on the the markets- GDP data along with manufacturing PMI, export-import data that all are scheduled to come this week. Apart from domestic macro-economic data, the US payroll data that is scheduled to come this week will also determine the course of the markets.
Indian markets seeking clarity about tapering of stimulus, last week, touched all-time highs. The S&P BSE Sensex on Friday was up 176 points, or 0.31 per cent at 56,124.72 while the Nifty50 was up 68 points, 0.41 per cent at 16,705.20.
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