Markets rebound amid positive global cues: Nifty50 edges close to 17,000, 44 out of 50 stocks in the green
- Nifty50 opened 135 points higher at 16,993, while Sensex opened 400 points up at 56,998.
- The Indian Rupee made some marginal gains to close at 81.9, but experts believe it is headed lower.
- All major sectoral indices tracked by BSE are trading in the green, with the overall sentiment remaining bullish.
- Media, metals, power and retail are amongst the top sectoral gainers today.
AdvertisementBenchmark indices Nifty50 and Sensex rebounded amid positive global cues and a cool down in crude oil prices, despite fears of the US Dollar strengthening further.
Nifty50 opened 135 points higher at 16,993, while Sensex opened 400 points up at 56,998. Both the indices crossed the 17,000 and 57,000 marks before paring their gains to an extent.
“Markets are likely to see a firm opening on Thursday, tracking a recovery in other Asian indices after US gauges staged a smart recovery in the overnight trades. The key positive catalyst is yields in the US and Europe retreated after the Bank of England's announcement that it will carry out temporary purchases of long-dated UK government bonds in order to restore orderly market conditions offered investors some support,” said Prashanth Tapse, research analyst - senior VP (Research) at Mehta Equities.
The Reserve Bank of India is also expected to follow the lead of the US Fed and announce another rate hike tomorrow. The consensus amongst experts is that a 50-basis point rate hike is highly likely, making it the third such hike in a row. This can take the repo rate to 5.9%.
“However, caution will still prevail and intra-day choppy trend is not ruled out due to global uncertainty over persisting increase in interest rates, rising inflation and geo-politicial tensions. On the technical front, Nifty can see upward momentum only if it crosses the hurdle of 17,327 mark,” Tapse added.
The Indian Rupee also continued to slump against the US Dollar, inching close to 82 per dollar. Experts believe the Rupee is headed further down as the RBI is not too keen on ‘aggressive’ interventions like before.
“We may see the rupee depreciating further, and a move closer to 82/$ cannot be ruled out,” a new report by Bank of Baroda Research said.
All major sectoral indices were in the green, with the overall sentiment being bullish as 1,682 stocks on the NSE were in the green, while 190 registering declines.
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