Dear
Trader…
The BSE benchmark Sensex advanced 875 points or 1.11% to settle
at 79,468. The broader NSE Nifty Future gained 316 points or 1.27% to end at
24,373.
The market capitalisation of all listed companies on the BSE
surged by Rs 9.07 lakh crore to Rs 448.66 lakh crore.
Among Sensex stocks, HDFC Bank, Infosys, L&T, ITC, Reliance
Industries, and ICICI Bank were the main contributors to the index’s rise.
Power Grid, M&M, SBI, and Axis Bank also supported the upward movement.
Realty stocks rallied up to 3.3% after the reports that the
government might move an amendment in the Finance Bill allowing taxpayers to
select either 12.5% LTCG taxes without indexation or 20% LTCG with indexation
for property bought before July 23, 2024. Oberoi Realty, DLF, and Lodha were
the top gainers.
Here are top factors aiding the rally today: –
1) BOJ’s stability
assurance – Bank of Japan (BOJ) Deputy Governor Shinichi
Uchida announced on Wednesday that the central bank would refrain from raising
interest rates during periods of financial market instability. This statement
helped ease concerns about potential tightening in the monetary policy.
The reassurance from the BOJ is seen as a positive signal for
global equity markets, as it indicates a more cautious approach to rate hikes.
Following the announcement, the dollar surged 1.6% to 146.65 yen, recovering
from the 141.675 low earlier in the week, though it remains below its July peak
of 161.96.
2)
US recession fears ease – Fears
of an imminent U.S. recession had also faded a little as the run of economic
data still pointed to solid economic growth in the current quarter. The Atlanta
Fed’s much-watched GDPNow estimate is that gross domestic product is running at
an annual pace of 2.9%. This resilience in the U.S. economy is positive for
global equity markets.
3)
Domestic buying – Domestic institutional
investors (DII) continued their buying spree on Tuesday, purchasing equities
worth Rs 3,357 crore. This follows their earlier purchase of Rs 9,155 crore on
Monday.
Even though FIIs were big sellers in India in
the cash market during the last three days, their selling is being matched by
DII buying. This countervailing investment by DIIs can impart resilience to the
market.
4)
Global market rally – Indian equities
mirrored global market gains on Wednesday, buoyed by strong performances in
European and Asian markets. Japan’s Nikkei led the surge after the Bank of
Japan unexpectedly adopted a cautious stance on rate hikes amid market
volatility, leading to a weaker yen. This positive global momentum, with
Europe’s Stoxx 600 index rising 0.8% and Nasdaq futures up 0.9%, helped propel
Indian markets higher, extending the positive trend.
5)
Oil prices near multi-month lows – Oil
prices crept higher on Wednesday, though Brent still languished near
seven-month lows, pressured by concerns over weak demand and fears of recession
in the United States. Brent crude prices fell over 11% to $76.9 in the past
four weeks. This drop in oil prices has positively influenced market sentiment,
as it could ease global inflationary pressures.
Nifty futures opened at 24310 points against the previous
close of 24056 and opened at a low 24208 points. Nifty Future closed with an
average movement of 189 points and a rise of around 316 points and closed 24373
points…!!
Meanwhile,
Global markets experienced a notable rebound
after the BoJ’s Deputy Governor reassured that the central bank would not raise
interest rates during a period of financial instability. The carry trade issue
appears to have been eased for now and the focus is on the ongoing RBI policy,
which is likely to hold the rate and positive economic outlook.
At the start of intra-day trading, October gold opened at Rs.69440
fell from a high of Rs.69440 points to a low of Rs.68740 with a rise of 265 points,
a trend of around Rs.69230 and September Silver opened at Rs.79340, fell from a
high of Rs.79897 points to a low of Rs.78920 with a decline of 115 points, a
trend of around Rs.79508.
Technically, the
important key resistances are placed in Nifty future are at 24373 levels, which
could offer for the market on the higher side. Sustainability above this zone
would signal opens the door for a directional up move with immediate
resistances seen at 24404 – 24505 levels. Immediate support is placed at 24240
– 24088 levels.
Past Performance is not an Indicator of Future Returns. The
securities quoted are for illustration only and are not recommendatory. Investment
in securities market are subject to market risks. Read Disclaimer and related
all the documents carefully before investing, mentioned on www.nikhilbhatt.in
