Saturday, July 13, 2024

Sensex Touches 57,000, all-time High; Nifty Nears 17,000

Must Read

The BSE Sensex on Tuesday opened in the green, was trading at 57,000, up 194.75 points, or 0.34 per cent. While the Nifty50 was at 16,959, up 28.59 points, or 0.17 per cent. On NSE, HCL Tech, Bharti Airtel, Dr Reddy’s were the top gainers in the early trade at 0928 hours. While Tata Motors, Mahindra and Mahindra, ONGC, ICICI bank were among the laggards. However on BSE, ESAB Ltd was the top gainer and Force Motor was the worst performer in the early trade. Sectorally, Nifty Bank, Nifty Auto, Nifty PSU Bank opened in the red, on the flip side, Nifty IT emerged as the top gainer. In the IT pack, Cyient, Coforge, Tech Mahindra were the top gainers.While BSE MidCap was up 0.25 per cent, BSE Smallcap was also up 0.50 per cent. The tapering of stimulus announcement made by US Fed Chair Jerome Powell, and his dovish stance, set the course of the market globally on Tuesday, but here in Indian markets, the clarity on GDP numbers is also impacting the markets in India. The GDP number is due to be released today.

“A distinguishing feature of this bull market which started in April 2020 is that it has been remarkably stable without any major correction. So, the newbie retail investors who entered the market since April 2020 (1.42 cr new Demat accounts opened in FY21) have been buying every dip, successfully. Now, with the Fed giving a commentary favourable to bulls, momentum is likely to take the Nifty to 17000. The flip side of this relentless Bull Run is the excessive valuation, which exposes the market to an unexpected sharp correction. This market has proved skeptics wrong, till now. Even while enjoying the party, investors should be prepared for a sharp correction. Partial profit booking is never a bad idea. IT stocks have turned a bit weak, perhaps due to dollar appreciation. But experience tells us that the performance of IT companies depends more on the deal wins than the exchange rate. So dips can be used to buy,” Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said.

Asian markets factoring in the clarity they got from Powell’s speech opened in green. Japan’s Topix index fell 0.2 per cent, Australia’s S&P/ASX 200 index rose 0.2 per cent South Korea’s Kospi fell 0.1 per cent. However, MSCI’s benchmark for global equity markets hit a record. The S&P 500 gained 0.43 per cent, to 4,528.76 and was on track to finish the month up more than 3 per cent, and the Nasdaq Composite added 0.9 per cent to 15,265.72 as investors jumped into technology stocks.

Indian rupee opened with marginal gains at 73.24 per dollar on Tuesday against previous close of 73.27.

However, Nifty Futures on the Singapore Stock Exchange was trading at 16,929, down 5.25 points, 0.03 per cent singaling a red opening for the markets in India. However, global markets remained upbeat weighing the dovish stance of Powell. Factoring in this,

“Nifty is now near the 17000 psychological mark. Sharply positive advance decline ratio has improved sentiments, though participants are aware of the high valuation and possibility of a correction that can set in soon. 17,000 is the next logical target for the Nifty while 16731 is the support for the near term,” Deepak Jashni, head of retail research, HDFC Securities said.

As the GDP data is coming today there is an expectation that the Indian economy will rebound in a double digit figure. The GDP number will set the course for the market tomorrow.

Read all the Latest News, Breaking News and Coronavirus News here

- Advertisement -spot_img
- Advertisement -spot_img

Latest News

Carbon Capture: Government to devise policy framework for carbon capture, utilisation and storage | India News

NEW DELHI: Govt will soon come out with a policy framework to implement carbon capture, utilisation and storage...
- Advertisement -spot_img

More Articles Like This

- Advertisement -spot_img