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Indian benchmark indices, the BSE Sensex and Nifty 50, gained at the opening bell on Friday, reflecting positive momentum in global markets.
Stock Market Rally Ahead?
Indian benchmark indices, the BSE Sensex and Nifty 50, gained at the opening bell on Friday, reflecting positive momentum in global markets.
At the start of trading, the BSE Sensex stood at 77,625, up by 500 points, or 0.22%, while the Nifty 50 above 23,500, rising by 40 points, or 0.17%.
The market can recover from the present levels since yesterday’s selling was largely due to the fall out of the Adani issue. But considering the headwinds the market is facing, a sustained recovery is unlikely. The strength in the broader market should not be confused with the fundamental strength of the segment. The strength of the broader market, particularly the midcaps, is due to liquidity and not fundamentals. Fundamental strength and safety are in large-caps. Banking and IT are fairly valued. FMCG, metals and Oil & Gas are weak, says V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Global Cues
Markets in the Asia-Pacific region mostly rose on Friday, tracking gains on Wall Street.
Japan’s Nikkei 225 jumped 0.78 per cent while the broad-based Topix rose 0.53 per cent.
Elsewhere, Australia’s S&P/ASX 200 was ahead by 0.92 per cent, and South Korea’s Kospi was higher by 1.12 per cent while the small-cap Kosdaq was ahead by 0.81 per cent.
Hong Kong’s Hang Seng index was trading 0.35 per cent higher, while mainland China’s CSI 300 was nearly flat with a positive bias, up 0.02 per cent. The Shanghai Composite was lower by 0.16 per cent.
Apart from that, an index of global stock markets edged higher in choppy trading on Thursday as investors digested lackluster revenue forecasts from artificial-intelligence chipmaker Nvidia and bitcoin approached the $100,000 milestone.
On Wall Street, the three main indexes finished higher in a choppy session led by gains in utilities, financials, consumer staples and industrials. The Dow Jones Industrial Average rose 1.06 per cent to 43,870.35, the S&P 500 rose 0.53 per cent to 5,948.71 and the Nasdaq Composite rose 0.03 per cent to 18,972.42.
