In an exciting turn of events, the stock market experienced a surge today as US Treasury yields slipped below 4.5 percent. The Nifty and Sensex indices echoed the positive sentiment seen in the US markets, fueling optimism among global market participants. All eyes are now on the upcoming FOMC minutes of the monetary policy meeting, which are expected to provide further insights into the future direction of interest rates.
At 11:53 am, the Sensex rose by 260.3 points or 0.40 percent to reach 65,915.45, while the Nifty climbed by 85.90 points or 0.44 percent to reach 19,779.90. However, the broader index faced a formidable resistance level at 19,800.
Leading investment strategist VK Vijayakumar of Geojit Financial Services believes that the market’s range-bound movement will soon be broken with an upward trend. With supportive global cues and softening US bond yields (the 10-year yield is at 4.41 percent), a significant market rally seems plausible. Vijayakumar further highlights that the market will closely monitor the state election results as a precursor to next year’s general elections, potentially acting as a trigger for a rally. If such an eventuality unfolds, large-cap stocks across multiple sectors like banking, IT, automobiles, capital goods, telecom, real estate, and construction-related segments are likely to lead the charge.
Q: What caused the stock market to rally today?
A: The stock market rallied today as US Treasury yields dipped below 4.5 percent, and there was a positive sentiment in the global markets.
Q: What are market participants waiting for?
A: Market participants are eagerly awaiting the FOMC minutes of the monetary policy meeting for further cues on the interest rate outlook.
Q: What sectors are expected to lead the rally?
A: If a rally occurs, it is likely to be led by large-cap stocks in sectors such as banking, IT, automobiles, capital goods, telecom, real estate, and construction-related segments.
Q: What other factors are influencing the market?
A: The market is also closely watching state election results as they may provide insights into next year’s general elections, potentially triggering a rally. Additionally, the softening US bond yields are providing a positive global macro backdrop.
Q: Which stocks performed well today?
A: Talbros Automotive surged 16.4 percent after securing orders worth Rs 580 crore, while Adani Enterprises jumped around 3 percent following the incorporation of its subsidiary. Kirloskar Electric also gained 6.35 percent after lifting the lockdown at its Bengaluru unit.
Q: Which sectors witnessed gains?
A: Nifty Metal and Nifty Realty saw the highest gains, while Nifty Pharma, Nifty Consumer Durables, and Nifty Financial Services added up to 1 percent.