Saturday, December 2, 2023

Sensex up 847 points as global indices rally on US eco data

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MUMBAI: The sensex reversed its three-session losing streak with an 847-point rally on Monday on the back of a strong rally in the US markets on Friday night as heavyweights like Reliance Industries, Infosys and TCS contributed the most to the index’s gains. The sensex gained 1. 4% to close at 60,747 points. The Nifty too gained 1. 4%, or 242 points, to close at 18,101.
The rally on Wall Street came on the back of a set of economic data that raised expectations that the US Federal Reserve, the country’s central bank, may not raise rates as aggressively as it did in the past few months. This led to a global rally in stocks.


As a result, of the 30 sensex constituents, 27 closed with gains. Interestingly foreign funds were strong sellers of Indian stocks with anet outflow worth Rs 203 crore, BSE data showed. Domestic funds, on the other hand, were net buyers at Rs 1,724 crore. The day’s rally also added Rs 3. 3 lakh crore to investors’ wealth with the BSE’s market capitalisation now at Rs 285. 5 lakh crore.
According to Motilal Oswal Financial Services head (retail research) Siddhartha Khemka, domestic equities saw some support-based buying after witnessing selling pressure last week, largely helped by a rally in global markets. Except stocks from consumer durables space, buying was visible across sectors with IT, metals, PSU banks and auto being top gainers. “Expectation of the US Fed turning less hawkish and opening of remaining Covid-related border controls by both Hong Kong and China uplifted investors’ sentiments. ”
Technically, the Nifty has to be above 18,000-18,050 zone for the current rally to sustain, Samco Securities technical analyst Rohan Patil wrote in a post-market note. This could take the index towards the 18,250-18,300 zone, whereas support for the Nifty is placed at 17,800, Patil wrote.
Going forward, investors will also keep an eye on US, Europe and India’s inflation data, expected during the week, Khemka said. “Further, Fed chair Jerome Powell’s speech on Tuesday will be important for global markets as it could throw some light for future action. ”
Some other dealers also expect the quarterly earnings numbers by some of the large companies, expected over the next two weeks, would also impact the market’s trend.

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