Similar to their international counterparts, India’s major benchmark indexes got off to a positive start on Friday.
The S&P BSE Sensex was seen quoting at 64,450 levels after opening 364 points higher at 64,445. At 19,250, the NSE Nifty 50 was up more than 100 points.
Tata Motors had a roughly 4% increase thanks to its impressive Q2 performance. Aside from Tech Mahindra, the other notable gainers among the Sensex 30 equities were Infosys, ICICI Bank, Mahindra & Mahindra, and HCL Technologies.
Alongside the benchmark indexes, the wider indices saw a 0.5% increase in value.
World Cues
The US market closed the night with strong gains as a result of investor anticipation that the Fed could be done raising rates, and the 10-year Treasury yield sharply fell to 4.67 percent, a three-week low.
Closer to home, each of the Hang Seng, Nikkei, and Kospi had gains of more than 1%. Taiwan gained 0.3%, while the Straits Times increased 1.6%.
According to Dr. V K Vijayakumar, Chief Investment Strategist of Geojit Financial Services, “We know from market history that sudden spikes in the market happen frequently.” And it seems that this adage is coming to pass. The bulls have gained confidence and made a formidable return in the US mother market, with the S&P climbing 1.9% yesterday, after the Fed’s decision to keep rates and abstain from issuing aggressive signals. The market has recovered thanks to strong profit results and predictions that interest rates would stay low for the time being and then drop in the second half of 2024.
The optimistic mood across the world may give the Indian bulls more confidence to make a return. Short covering is a possibility since FIIs are short in the market, according to Vijakumar.
“Investors have to keep in mind that this market has proven successful for the purchase on dips approach. It should function once more. Excellent large-cap stocks in capital goods, autos, and finance are doing well. He said, “Mid-cap IT is performing nicely.
