Major benchmark indices rose nearly 2 per cent in morning trades on Monday on firm global momentum. Benchmark S&P BSE Sensex Bids climbed over 950 points to 55,863, while nifty 50 It rose 284 points to 16,636. Indian stocks saw their market cap rise by Rs 4.4 lakh crore as investors on Dalal Street tracked Friday’s rally in US stocks, expecting inflation to rise soon.
According to analysts, domestic investors drew inspiration from China’s easing of COVID restrictions in early May and the US Fed’s minutes released on Wednesday, which, after further monetary action in June and July, raised interest rates later this year. fueled speculation over a possible halt in growth. VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said: “The market is poised for a near-term rally. The sharp jump in the Nasdaq & S&P 500 late last week signals a near-term trend reversal.
Here are the factors that fueled the stock market rally today-
Deepak Jasani, Head of Retail Research, HDFC Securities said, “Indian markets rose for the third consecutive session on May 30 following positive global cues due to China, as China eased Covid curbs and Wall Street gained sharp gains on Friday. Of. Some of the local factors helping the mood include early onset of monsoon in Kerala, which is expected to have a favorable impact on agricultural crops. The stocks were due for a bounce anyway, after consistently underperforming since early April 2022. at the level of 16800-16850 nifty It can be hard to breach in the near term. ,
1) US Markets Rally
US stocks enjoyed a broad-based rally on Friday, while yields on the benchmark US Treasury fell after data showed US consumer spending picked up in April and inflation slowed, two signs of the world’s worst. The larger economy may be on track to grow this quarter. , The Dow Jones Industrial Average rose 575.77 points, or 1.76 percent, to 33,212.96, the S&P 500 rose 100.4 points, or 2.47 percent, to 4,158.24 and the Nasdaq Composite rose 390.48 points, or 3.33 percent, to 12,131.13.
2) Asian Equities Remain Higher
Asian equities traded higher after China eased Covid restrictions and offered economic aid measures in Shanghai and Beijing. Shanghai will loosen COVID testing requirements for people entering public places and Beijing will loosen mobility restrictions in several districts from Sunday, as officials said the outbreak was under control. The Nikkei rose two per cent, the Hang Seng by 1.9 per cent, the CSI 300 by 0.5 per cent, Taiwan and the Kospi rose 1.7 and 1.4 per cent, respectively.
3) China eases restrictions on Kovid
Asian equities traded higher after China eased Covid restrictions and offered economic aid measures in Shanghai and Beijing. Shanghai will loosen COVID testing requirements for people entering public places and Beijing will loosen mobility restrictions in several districts from Sunday, as officials said the outbreak was under control. The Nikkei rose two per cent, the Hang Seng by 1.9 per cent, the CSI 300 by 0.5 per cent, Taiwan and the Kospi rose 1.7 and 1.4 per cent, respectively.
4) Buying in heavyweight
HDFC Duo, IT major Infosys and five stocks such as TCS and Reliance Industries contributed over 550 points to the Sensex in a positive way. Bargain hunting and the recent depreciation in the rupee are boosting IT stocks which generate a major chunk of their revenue from exports.
Investors are also waiting for the GDP data for the March quarter which is scheduled to be released on May 31. Analysts have a wide range of forecasts for growth of 2.7 to 4.5 percent for the quarter. State Bank of India expects growth of 2.7 percent for the quarter
6) Early arrival of monsoon
The India Meteorological Department (IMD) said that the southwest monsoon has entered Kerala on Sunday, three days ahead of its normal onset date of June 1. Analysts believe that this is good news for India battling rising inflation. Timely and normal rains can boost the production of monsoon sown crops like rice, soybean and pulses etc.
7) Nifty Technical Outlook
Anand James of Geojit Financial Services said: “The wall of 16400 which had defied at least three bold attempts in the last 30 days still stands firm, but will soon face one of the strongest challenges, because The event is at risk in the times to come. The fortnight also carries an element of positive surprise. The logic being that the Nifty’s bounce is far from the only 23 per cent Fibo of its 2020 rally, when compared to the S&P 500’s over 62 per cent Fibo, Jumping over 7 percent, and the average reversal loses its sound with more room for upside before challenges surface. This encourages us to stay with the 16,750 move we started last week, even though The default outlook would be to expect rejection trades at 16,415. The downside risk level identified as 16,084 last Friday would be taken to the 16186/51 zone. In fact, there is no doubt that Nifty is in for a big move soon. In the downsides, being at the upper end of the month-old parallel consolidation range There is a potential of 1,400 points, as opposed to a potential of 700 points for the upside, as a measure of the range and the side from which the Nifty is coming out. That said, the fortnight ahead will be one for risk takers. ,
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