Indian equities touched new highs on Monday as the BSE Sensex was up 648.6 points or 1.16 per cent at Rs 56,773. While the broader market Nifty 50 rose to Rs 16,900. Market sentiments were boosted by profit-booking as well as a soft stance by US Fed Chairman Jerome Powell. Among the broader markets, the BSE Midcap and Smallcap indices each gained nearly 2 per cent. Sectorally, the Nifty Metal index rose 2.5 per cent, followed by Nifty Realty, Pharma and Bank indices. Speaking at the Jackson Hole symposium, Powell indicated that the US central bank was unwilling to move too quickly to raise rates. These words of Powell also led to a strong boom in the Indian stock market.
At 1429 hrs, Bliss GVS Pharma, Apar Industries, Aster DM were the top losers on BSE, while Spice Jet, Sudarshan Chemical were the laggards. On NSE, Axis Bank, Tata Steel, ONGC were among the top performers, while Infosys, Tech Mahindra, Eicher Motor, TCS were the losers.
The market opened in a positive zone in early trade on positive global cues. BSE Sensex was up 321.99 points, or 0.57 percent, at 56,446.71, and nifty It was up 103.30 points, or 0.62 per cent, at 16,808.50. About 1535 shares have risen, 339 shares have declined and 107 shares have remained unchanged. At 0931, Bharat Forge, India’s tinplate company, is the top gainer on BSE. Whereas SpiceJet, Mangalam Cement, Sudarshan Chemicals lagged behind. On NSE, Hindalco, Tata Motors, M&M are the top performers while Tech Mahindra, HCL Tech, TCS were among the losers. Sector wise, except Nifty, all the indices opened in the green. Nifty was down 0.11 per cent. However, Nifty Auto was the top performer and was up 1.49 per cent. All the indices were trading in a positive range on the BSE.
“The benchmark indices are expected to open on a positive note as suggested by the trends on SGX Nifty. US markets closed higher on Friday and ended at record highs after Fed Chairman Jerome Powell signaled that the central bank may begin tapering by the end of the year, but did not give a definite timeline. Asian markets were trading positive in early Monday with Chinese markets up 1.1 per cent. Stock specific functions in stocks like Bharti Airtel (plans to raise up to Rs 21,000 crore through rights share issue), Cipla (University of Iceland sues Cipla to block copies of Nezilam), M&M (MoD) can be seen. 1,349.95 crore contract to Mahindra Defense Systems), Nazar Technologies (acquisition of 100% stake in Hyderabad-based skill gaming company OpenPlay Technologies). on the technical front; Nifty 50 has 16,650 and 16,900 immediate support and resistance,” said Mohit Nigam, Head-PMS, Hem Securities.
However, Asian markets also opened in a positive zone on Monday. Japan’s Nikkei rose 0.9 percent soon after the bell, and MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.32 percent in early trade ahead of the opening of Chinese markets. The Australian market opened with a gain of 0.39 percent and similarly Korea’s Kopsy opened with a gain of 0.54 percent. At 0702, Nifty futures were trading in the red -3.50 points or 0.02 per cent lower at 16,821 on the Singapore Stock Exchange, indicating that the Indian markets are heading towards a negative start today.
“The much-anticipated 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 been quick to add that there is much to cover before a rate hike. So, even though this can be regarded as the beginning of a normalization of accommodative policy, the communication is smart enough not only to calm the markets but also to excite it. As a result, the dollar index fell below 93. Markets have pushed the indices to record highs. This will excite the bulls in India, said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
However, Asian stocks, on the other hand, started the week with gains,
This week, all eyes will be on two domestic macro-economic data that are going to impact the markets- GDP data as well as manufacturing PMI, export-import data which are all due out this week. Apart from the domestic macro-economic data, US payrolls data coming out this week will also decide the course of the markets.
Indian markets, seeking clarity on the lack of stimulus, hit an all-time high last week. On Friday, the S&P BSE Sensex was up 176 points, or 0.31 per cent, at 56,124.72 while the Nifty 50 was up 68 points, 0.41 per cent at 16,705.20.
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