In a continuation of the positive and
upward momentum, the stock market opened on a high note on Friday, with both
the Sensex and Nifty poised for sustained upward momentum.
The optimism is fueled by positive
global market conditions and expectations of an accommodative monetary policy
from the US Federal Reserve.
The Sensex saw a robust opening, gaining
261.43 points to reach 70,764.99, while the Nifty 50 opened 83.30 points higher
at 21,266.00. Among the Nifty companies, 40 advanced, while 10 faced declines.
Leading the gains among Nifty firms were
Hindalco, JSW Steel, UPL, Tata Steel, and Infosys. Conversely, HDFC Life,
Nestle India, BPCL, Kotak Bank, and Apollo Hospitals experienced losses.
The upward trend extended throughout the
trading day, resulting in the Sensex achieving a record high and closing at
70,514.20, reflecting a gain of 929.60 points or 1.34 per cent. Simultaneously,
the Nifty 50 surged by 256.35 points or 1.23 per cent, concluding at 21,182.70.
Profit Idea founder and managing
director Varun Aggarwal said, “This upward trend is propelled by the Federal
Reserve’s dovish stance, hinting at potential rate cuts in 2024, along with a
decline in US bond yields. Favourable domestic factors, including an upgraded
GDP forecast for Bharat and lower global oil prices, further contribute to this
growth.”
Despite a slight uptick in retail
inflation in November, a detailed analysis of the inflation basket reveals that
nearly 49.3 per cent of items fall within the central bank’s inflation
tolerance range of 2-6 per cent.
HDFC Bank Ltd is anticipated to be a
focal point on December 15, owing to expected FTSE-related inflows of
approximately US$ 450 million. The index aggregator FTSE is undergoing a
rebalancing, injecting a substantial US$ 500 million into the Indian market,
with a significant portion expected to flow into HDFC Bank.
Aggarwal said, “Asian shares reached a
four-month peak, supported by sharp declines in the dollar and US yields,
extending the rally fueled by the Fed. However, potential resistance to rate
cuts from central banks in Europe may impact global pivot aspirations”.
On the global front, Asian shares
reached a four-month peak, supported by sharp declines in the dollar and US
yields, extending the rally fueled by the Federal Reserve. However, potential
resistance to rate cuts from central banks in Europe may impact global pivot
aspirations.
The Indian rupee rebounded from all-time
lows, closing at 83.30 against the US dollar on Thursday, marking a gain of 10
paise against the greenback. This currency recovery adds another positive
element to the overall market sentiment, further reinforcing the optimistic
outlook for the Indian stock market.
ANI
