The Indian stock market today touched record highs on the back of strength from banking and metal stocks. Global markets were also higher as investors took a slightly sharper stance in their progress by the US Federal Reserve. NS Sensex There was 800 points to reach a new high of 59,747. Market capitalization of shares listed on BSE increased ₹3 lakh crore today. The broader Nifty was up over 1% and was trading near the 17,750 level.
Here are the major updates from today’s market:
The Fed said last night that it would begin reducing its monthly bond purchases in early November, and indicated it could raise interest rates faster than expected.
But “the momentum of the ongoing bull run is evident from the US market’s reaction to the Fed’s announcement. The Dow, Nasdaq and S&P 500 rose nearly 1% after the Fed indicated that ‘moderation in asset buying momentum may soon be in place’.” ‘Warranted’. This bullish response for a mild Fed is surprising, but a sign of a strong bullish undercurrent,” says VK Vijayakumar, chief investment strategist at Geojit Financial Services.
Financial stocks jumped today with Bajaj Finserv, Bajaj Finance and Axis Bank rising between 2% and 5%.
“The confusion even between smart money is evident over the nature of FII and DII investments and with FIIs becoming sellers ( ₹1943 crores) and becoming DII buyers ( ₹1850 crores) in the cash market yesterday – a reverse of their position the day before. Meanwhile, the Evergrande crisis now seems to be easing. This bull market is easily climbing all walls of worry, surprising even the dying bulls. Now, we don’t know how long the party will last.”
The Indian rupee strengthened today despite broad strengthening of the dollar. The rupee was at 73.87 against the US dollar from its previous close of 73.87.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments said: “Nifty has crossed the 17600 mark with a gap opening. If we can sustain this on a closing basis, then it is a positive sign for the markets. We can go up to 17900. A good support is at 17200 and the overall trend remains positive until we break it.”
Nifty real estate index was up 5% today, Godrej Properties rose 7% to hit record high.
Godrej Properties on Wednesday said it has sold residential properties of ₹575 crores in a single day in his luxury project in Noida.
Analysts say while positive sentiment is spreading across ancillary sectors, indicating an increase in property sales, private banks exposed to property mortgages have also benefitted.
Asian markets were broadly higher today as a negotiated coupon payment statement from the China Evergrande Group unit allayed fears about the developer’s risk of a debt crisis. (with agency input)
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