Happy new fiscal year! Nifty50 hits record high

Indian equity indices opened higher for the third straight session on Monday, tracking Asian peers, after a moderation in a key U.S. inflation reading heightened hopes of a Federal Reserve rate cut in June.

Nifty50 hit a fresh record high of 22,530 as it rallied 0.80% while Sensex surged 500 points, up 0.70%.

Meanwhile, the market capitalisation of all listed companies on BSE surged by Rs 4.7 lakh crore to Rs 391.67 lakh crore.

Fed Chair Jerome Powell said on Friday that the latest inflation reading was in line with the central bank’s expectations.

Tata Steel, JSW Steel, Kotak Bank, HDFC Bank and Infosys opened 1-2% higher and were the top Sensex gainers in early trade on Monday. Bajaj Finserv, L&T, HCL Tech and Tata Motors also opened with gains.

Hindustan Aeronautics rose 3.4% in early trade after the company signed a contract worth Rs 1,173 for the supply of gas turbines.

RVNL shares opened 5% higher after the company’s joint venture with Salasar Techno Engineering emerged as the lowest bidder for a project worth $7.2 million from Energy Development Corporation.

On the sectoral front, Nifty Bank, Financial Services, Media, Realty, and Consumer Durables opened over 1% higher. Nifty Oil & Gas, IT, Healthcare, Pharma, and Auto also surged around 0.9%. In the broader market, Nifty Midcap100 surged 1.3%, and Nifty Smallcap100 rose 2%.

Experts Take

“The undertone of the market is bullish and there is momentum in the market. The market has been showing signs of consolidation but the spurt in Nifty by 322 points on the last 2 trading days indicates that the upward momentum can sustain,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

“There are reports of mutual funds introducing restrictions on redemptions from the smallcaps schemes. The consequence of this action would be higher flows of funds into the largecaps, which, in turn, can lift the largecaps. So, watch out for largecaps in automobiles, capital goods, financials and select pharma which are likely to post good Q4 numbers,” Vijayakumar said.

Global Markets

Chinese shares led a rally around most of Asia on Monday amid a broadly optimistic global economic backdrop, but Japanese shares tumbled with the yen pinned near levels that have traders on guard for a currency intervention.

U.S. stock futures also pointed firmly higher following a market holiday on Friday, when the Federal Reserve released data showing their preferred inflation measure indicated price pressures are further easing, bolstering bets for a June interest rate cut.

Many markets are closed on Monday for Easter holidays, including Australia and Hong Kong in Asia, and the United Kingdom and Germany.

FIIs turned net buyers

Foreign portfolio investors turned buyers in Indian equities after selling over the previous two financial years, while domestic mutual fund investors continued to purchase domestic equities for 36 months in a row.

On Thursday, overseas investors bought Rs 188 crore of shares on a net basis while domestic institutional investors purchased shares worth Rs 2,692 crore, according to provisional data from the National Stock Exchange.

Oil rises

Oil prices rose on Monday, adding to recent gains amid expectations of tighter supply from OPEC+ cuts, attacks on Russian refineries and as upbeat Chinese manufacturing data supported outlooks for improving demand.

Brent crude rose 29 cents, or 0.3%, to $87.29 a barrel after rising 2.4% last week. U.S. West Texas Intermediate crude was at $83.48 a barrel, up 31 cents, or 0.4%, following a 3.2% gain last week.

Dollar index

The dollar index, which measures the U.S. currency against six rivals including the yen, was steady at 104.50, hovering close to the six-week high of 104.73 it touched last week.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

Roy Walsh

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