Among Sensex stocks, HDFC,
, , , , TCS and were the top gainers in today’s trading session, rising around 3-5.5%. , , L&T, , and also ended with gains.
On the other hand, M&M, SBI,
, Dr Reddy’s Labs, and ended the session with cuts.
“The domestic market joined the global run as markets across the world cheered the lower-than-expected US inflation data. The US dollar slumped along with treasury yields as investors evaluated the likelihood of a less hawkish rate hike by the Fed. Reduced treasury yields will aid to improve FII inflows. The rally of the domestic market was led by IT stocks as recession fears reduced and
twins after merger overhang,” Vinod Nair, Head of Research at , said.
Sectorally, the Nifty IT advanced 3.81% and Nifty Financial Services surged 2.17%. Nifty Metal and Nifty Oil & Gas also closed higher. In the broader market, Nifty Midcap50 rose 0.06% and Smallcap50 gained 0.37%.
Earlier in Asian markets, Japan’s Nikkei 225 surged 2.98%, China’s Shanghai Composite rose 1.69% and South Korea’s Kospi gained 3.37%.
The Indian rupee rose against the dollar today on expectations of a less hawkish Federal Reserve stance on interest rates, clocking its biggest weekly advance since December 2018. The rupee ended at 80.79 per dollar against its previous close of 81.80. While the Brent crude January futures surged 3.09% to $96.56 per barrel.
The market breadth was skewed in favour of bulls. About 1,824 stocks gained, 1,630 declined and 147 remained unchanged. The market capitalisation of all listed companies on BSE increased by Rs 2.87 lakh crore to Rs 284.46 lakh crore.
What should investors do?
Analysts say a new market high cannot be ruled out if global markets are supporting it. “Investors need to be patient in this market and invest in a staggered manner. Also, investing in dips will work well in this market. We recommend investors build a position in quality companies (where the earnings visibility is very high) with an investment horizon of 12-18 months,” said Naveen Kulkarni, CIO, Axis Securities PMS.
Amid non-stop FII inflows in the last few days, the ongoing quarterly result season has also been in line with expectations. However, worries around global slowdown remain an overhang for investors.
“We continue to remain constructive on the equity markets prospects, especially the emerging markets like India which will be driven by the strength of domestic consumption and the strength of the economy,” said Sushant Bhansali, CEO, Ambit Asset Management.