Indian stock markets were firm today amid positive global equities after Federal Reserve Chairman Jerome Powell gave less-than-expected enthusiasm in a Congressional testimony. Sensex was up over 500 points in afternoon trade while Nifty was trading above 18,200. Federal Reserve chief Jerome Powell said on Tuesday he was determined to rein in runaway inflation but vowed to maintain a healthy recovery in the world’s top economy.
Indian market Despite the rise in Covid cases, they are gearing up for a fourth straight session. According to the latest Union Health Ministry data, India added 1,94,720 new coronavirus infections to the total number of COVID-19 cases, including 4,868 cases from the Omicron version. Active cases have risen to 9,55,319, the highest in 211 days.
“Although Omicron cases are exploding in Europe and the US, the market message is that it is a manageable risk. The short-term momentum puts a market in complete control of the bulls,” said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services. reflects.”
The Nifty IT index was up 0.3%. Technology major Infosys was up over 1% while Wipro and TCS were down around 0.5%. The companies will report their third quarter results later in the day. IT stocks rose 55% in 2020 and 59.6% in 2021 as investors bet on a surge in demand as people went online during the pandemic.
“The good results expected from the three IT companies today are likely to bring resilience to the market. Starting Saturday, the results of major banks will also be good due to reduced provisioning and rising NIMs,” said Mr. Vijayakumar.
On the risks of an expected Fed rate hike this year, he said: “It is interesting to note that despite the Fed chief’s statement that he will use the “full suite of policy tools to contain high inflation,” the US 10-year K bond yields declined marginally. This indicates that the market has already discounted three or four rate hikes in 2022.”
Rahul Sharma, Co-Owner, Equity99, said that there are very positive expectations in the market regarding the third quarter results.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments said, “The market is trading above the 18000 level. We should look to 18400-18500 as the next target. Since the market has good support at 17700, any intraday correction should be used to accumulate long positions on Nifty.”
Eyes are also on India’s consumer price inflation data due later in the day, with a Reuters poll of 41 economists showing retail inflation rose to 5.80% last month, from 4.91% in November., (with agency input)
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