India’s key benchmark indices started Friday’s trading session on an upbeat note
Sensex Today: Mirroring strong cues from the global counterparts, India’s key benchmark indices started Friday’s trading session on an upbeat note.
The S&P BSE Sensex opened 364 points higher at 64,445 and was seen quoting around 64,450 levels. The NSE Nifty 50 was up over 100 points around 19,250.
Tata Motors rallied nearly 4 per cent on the back of strong Q2 results. Tech Mahindra, Infosys, ICICI Bank, Mahindra & Mahindra and HCL Technologies were the other prominent gainers among the Sensex 30 shares.
The broader indices also moved in tandem with benchmark indices, and were up around 0.5 per cent each.
Global Cues
Overnight, the US market ended with solid gains on investor optimism that Fed may be done with hiking rates, and a sharp drop in 10-year Treasury yields to 4.67 per cent, its 3-week low.
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Nearer home, Hang Seng, Nikkei and Kospi were up over 1 per cent each. Straits Times rallied 1.6 per cent, while Taiwan added 0.3 per cent.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “Market history tells us that sharp up moves in the market happen at unexpected times. It appears that this truism is turning out to be true. The Fed decision to hold rates and refrain from making hawkish indications has emboldened the bulls to make a strong comeback in the mother market US with S&P rising 1.9% yesterday. Good earnings numbers and expectations that the interest rate will remain stable for now and will decline in H2 of CY2024 have facilitated market recovery.”
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The positive global sentiments can embolden the bulls in India to stage a comeback. Since FIIs are short in the market, short covering is a possibility, Vijakumar said.
“Investors should remember that the buy on dips strategy has worked in this market. It is likely to work again. High quality large-caps in financials, automobiles and capital goods are on strong wicket. Mid-cap IT is doing well,” he added.
