Sensex bounced 450 pts back; top factors that fuelled buying spree on Dalal Street
Sensex bounced 600 pts back; top factors that fuelled buying spree on Dalal Street
Macroeconomic data
Market participants were eyeing macro data -- January IIP and February CPI inflation -- due later in the day.
India’s retail inflation is expected to ease to a four-month low in February on softening prices for vegetables and other perishable foods, but will probably stay above the central bank’s target, a Reuters poll showed.
Low level buying
Benchmark equity indices BSE Sensex and NSE Nifty have cracked over 8 per cent from their respective all-time highs scaled in January 2018. According to a Reuters quoting Anand James, Chief Market Strategist at Geojit Financial Services, said, “Market bounced off its 200-day moving average, which is attracting some bargain buying at the bottom.”
Firm global cues
Global markets rallied after the US data indicated that non-farm payrolls jumped from last month, but annual growth in average hourly earnings slowed after a spike in January, easing fears of inflation and speculation the Federal Reserve would project four rate hikes instead of the current three. The Dow closed back above 25,000.
Positive Asian markets further supported the domestic indices. Peers Hang Seng, Nikkei and Shanghai rallied up to 2% on monday.
India to become $5 trillion economy
Positive state by the Commerce and Industry Minister Suresh Prabhu further lifted market sentiment. The minister on Friday exuded confidence that India will become a $5 trillion economy in the next seven years. Also, he said that India will be a bigger economy than China at some point of time. At present, India’s economy is estimated at $2.5 trillion and that of China at $11.85 trillion.
Source: Economic times
The domestic equity market made a smart comeback on
Monday after a disappointing last week, as BSE Sensex surged over 450 points to 33,759, while Nifty50 rose 142 points to 10369 in late afternoon trade.
So what drove Monday’s bull run? Going by
the buzz on Dalal Street
here is a list of key factors that lifted the market.
Macroeconomic data
Market participants were eyeing macro data -- January IIP and February CPI inflation -- due later in the day.
India’s retail inflation is expected to ease to a four-month low in February on softening prices for vegetables and other perishable foods, but will probably stay above the central bank’s target, a Reuters poll showed.
Low level buying
Benchmark equity indices BSE Sensex and NSE Nifty have cracked over 8 per cent from their respective all-time highs scaled in January 2018. According to a Reuters quoting Anand James, Chief Market Strategist at Geojit Financial Services, said, “Market bounced off its 200-day moving average, which is attracting some bargain buying at the bottom.”
Firm global cues
Global markets rallied after the US data indicated that non-farm payrolls jumped from last month, but annual growth in average hourly earnings slowed after a spike in January, easing fears of inflation and speculation the Federal Reserve would project four rate hikes instead of the current three. The Dow closed back above 25,000.
Positive Asian markets further supported the domestic indices. Peers Hang Seng, Nikkei and Shanghai rallied up to 2% on monday.
India to become $5 trillion economy
Positive state by the Commerce and Industry Minister Suresh Prabhu further lifted market sentiment. The minister on Friday exuded confidence that India will become a $5 trillion economy in the next seven years. Also, he said that India will be a bigger economy than China at some point of time. At present, India’s economy is estimated at $2.5 trillion and that of China at $11.85 trillion.
Source: Economic times
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