People looks at decorative ornaments on sale for the upcoming festival of Diwali. The special Diwali Muhurat trading shall be held on October 24
Indian stock market update: Sensex and Nifty traded sharply higher today
Indian stock markets traded sharply higher today, tracking positive global equities. BSE benchmark Sensex was up over 700 points while Nifty held above 17,500 levels. Stocks were mostly higher in Asia after an overnight rally on Wall Street in another bout of recent topsy-turvy trading. On Monday, the S&P 500 climbed 2.6% to 3,677.95. The Dow gained 1.9% to 30,185.82, while the Nasdaq added 3.4% to 10,675.80.
“The whipsaw movement in the mother market of the US is a reflection of the fast changing perception about the US inflation expectations, terminal Fed rate and direction of the US economy. A section of market participants now feel more optimistic about a soft landing of the US economy and have now turned bullish about the market. It remains to be seen whether this view gathers wider acceptance and sustains," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
"In India bulls are gaining strength aided by India’s growth outperformance, good early Q2 results, declining FII selling, steadily rising DII buying and the optimism ushered in by the festive season. Bank Nifty is resilient with the potential to take banking stocks as well as Nifty higher," he added.
The special Diwali Muhurat trading shall be held on October 24.
Domestic sentiment was further lifted after RBI in its latest bulletin said that the country's retail inflation was set to ease from the five-month high of 7.41% hit in September, while economic activity is poised to expand.
In a note, ICICI Securities said: “We expect Niftyto endure its positive momentum and gradually resolve above the upper band of consolidation placed at 17500 levels. Eventually, we expect index to accelerate upward momentum towards psychological mark of 18000 in coming weeks. However, such a move would be in a nonlinear fashion amid global volatility. Thus, any cool off from hereon should be capiatlised to accumulate quality stocks as buying on dips strategy has been faring well over past couple of weeks."
Anand James - Chief Market Strategist at Geojit Financial Services, said the recovery and push beyond 17430 is probably gathering steam for a run up to18100, with initial stop at 17580. “Given the sharp decline that ensued a few days back while attempting a breach of 17430, the downside marker needs to be placed near 17240/180," he added.
Banking stocks were higher today with Nifty Bank index rising over 1% to 40,350 levels, extending its Monday's strong gains. RIL rose over 2%.
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