Sensex crosses the 60,000-mark for first time in four months
- Indian markets opened higher even as SGX Nifty, an early indicator of the market, was up 0.22%.
- Investors await the release of the minutes of the US Fed Reserve's policy meeting later in the day that could offer clues on further interest rate hikes.
- Sensex traded 198 points higher at 60,042 and Nifty50 ended 65 points higher at 17,891.
AdvertisementIndian markets continued the gaining streak as Sensex crossed the 60,000-mark today – the first time since April this year. The markets have been rallying for the last 30 days, due to positive cues from global markets and FIIs coming back to emerging markets like India.
“Today’s rescaling of the 60000 peaks is a sign of the strength of retail investors in India. It shows the belief of the investors in the India growth story and is another reminder to all of us to be optimistic about India Inc,” said Jaideep Hansraj, MD & CEO at Kotak securities.
Analysts say Sensex has hit the 60k level after a 4 month period led by consumption related stocks & sectors, crude oil prices that helped markets revive from lower levels. “At one point Sensex was about to break the psychological level of 50k but the confidence in the domestic economy from the retail investors, domestic institutions and fund manager managers helped the markets to stay above it. The market is not far from crossing the levels all time highest levels,” said Shrikant Chouhan, head of equity research (Retail) at Kotak Securities.
“Global markets were positive after China announced a surprise cut in interest rates by 10 bps. Oil prices continued to plunge as investors weighed the impact of slowing growth on energy demand. Markets have done well in the last couple of weeks with Nifty crossing major resistance,” said Siddhartha Khemka, head - retail research at Motilal Oswal Financial Services.
Sensex is trading 198 points higher at 60,042 and Nifty50 was up 65 points higher at 17,891, at 11 am today.
Gains were led by shares of automakers, FMCG companies and financial services, which rose in early trade along with cues from global markets ahead of the US Fed outcome on interest rate hikes.
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Moreover, easing inflationary concerns also supported the positive sentiment in the market.
“Second consecutive month of softening in inflation data, along with robust IIP growth, boosted the market sentiments. It has led to the hope that inflation might have peaked out with the sharp cool off in the commodity prices. Hence expectation of a softer stance by RBI in its next MPC meeting. FIIs continuous buying throughout the month of August so far has provided further fillip to the markets,” added Khemka.
Investors are also waiting for the release of the minutes of the US Fed Reserve's policy meeting later in the day that could offer cues on further interest rate hikes.
Market participants are awaiting the minutes of the Fed's July 26-27 policy meeting. The US central bank raised its benchmark overnight interest rate by 225 basis points since March to tackle high inflation. Now it is expected to raise its policy rate by another 50 or 75 basis points at its next meeting on September 20-21.
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