After making a weak opening to the holiday-truncated week, the domestic market witnessed a solid opening on Tuesday, mirroring strong cues from global markets, as Wall Street rallied almost 3% in the overnight session, marking its best day since the summer and Asian equities followed suit in today’s session.
Indian benchmark equity indices Nifty50 and Sensex traded 1.92% higher and Sensex rallied past 1,100 points at 1,112.16 or 1.96% at the time of writing after making a gap-up opening on Tuesday.
Banking and financial stocks led the market rally, while metal and IT stocks added to the uptrend too ahead of a Dalal Street day-off on account of Dusshera.
All the sectors listed under the Nifty umbrella reversed the previous session’s sentiments and traded in green, with Nifty Private Bank leading the rally, up 2.75%. Nifty Bank surged 2.5%.
Barring Dr. Reddy’s Laboratories and PowerGrid Corp, all stocks under the Nifty50 index traded in green, led by IndusInd Bank (NS:INBK), up 5%.
Dr V K Vijayakumar of Geojit Financial Services states that the markets have a record of troughing out in October, which may happen this time too. He added that in the past 8 out of 10 years, Sensex has given positive returns in the month.
“For the near-term, the market sentiments have turned positive with a declining trend in dollar and US bond yields. If this trend continues FIIs will again turn big buyers in India and they will not get stocks cheap,” the expert stated.
Vijaya kumar sees financial and auto stocks leading the uptrend given their strong fundamentals and prospects. Capital goods are likely to join the rally and telecom is on a strong wicket, he added.
Reviewed by ＲＯＨｉＴ
on
October 05, 2022
Rating:
No comments: