Why? Share Market Growing up today? Bulls raged on D-Street as indices reversed gears to post a rebound on October 4, fueled by upbeat quarterly updates. India Inc and heavy buying in US and Asian markets. A fall in the dollar and US bond yields also strengthened the sentiment. Sensex rose over 1,100 points and nifty was placed above the 17,100 mark.
Markets have been volatile over the past week due to global cues, but now that corporate earnings season is about to begin, analysts expect sentiment to improve. Since 2011, there have been only two occasions when the Sensex has given negative returns in the festive month of October, which also marks the beginning of the third quarter and the second half of the financial year.
“We expect the (Nifty 50) index to remain above the psychological level of 17,000,” said analysts at ICICI Securities.
Be in favor of gains in the market. In Nifty 50, 48 stocks rose led by IndusInd Bank, Bajaj Finance, Hindalco Industries and TCS. The only two losers were POWERGRID and Dr Reddy’s Labs.
VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said the risk-off, risk-averse texture of the market is in response to rapidly changing economic and market cues.
“The market sentiment has turned positive due to a declining trend in dollar and US bond yields in the near term,” he said. “If this trend continues, Foreign Institutional Investors (FIIs) will again become big buyers in India and they will not get the stock cheap. Financials and Auto are again set to lead the uptrend as their fundamentals and prospects remain strong. Capital goods are likely to join the rally and telcos are in a strong position. ,
September quarter earnings
Ahead of the September quarter earnings session, encouraging quarterly updates from companies improved sentiment. Companies from different sectors posted steady growth leading to buying in the market.
IndusInd Bank shares rose 5.7 per cent after it said net advances in the second quarter grew 18 per cent year-on-year. Shares of Mahindra & Mahindra Financial Services rose 10 per cent for September after strong disbursements and improved collection efficiencies.
FII purchase
After being net sellers of over Rs 7,000 crore in September, foreign institutional investors or FIIs bought Indian equities worth Rs 590 crore on the first trading day of Q3 yesterday.
“If this trend continues, FIIs will again become big buyers in India and they will not get the stock cheaply. Financials and Auto are again set to lead the uptrend as their fundamentals and prospects remain strong. Capital goods are likely to join the rally and telcos are on a strong wicket,” said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
global signal
The Dow Jones closed its biggest one-day advance in three months with a gain of 2.66 percent on Monday as investors looked at the possibility that the US Fed could be forced to withdraw from aggressively tightening monetary policy. Is.
Other Asian markets were also in a festive mood as Japan’s Nikkei rose to its highest level in nearly two weeks on Tuesday. Markets in mainland China and Hong Kong are closed for the holiday.
Dollar yields soft
The dollar index, which pits the US currency against the euro and four other rivals, fell nearly 2.2 per cent over a four-day period to a one-week low of 111.40.
Meanwhile, yields on the US 10-year Treasury note fell to a low of 3.587 per cent on September 22, making riskier assets such as emerging market equities attractive.
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