Sensex, Nifty In Big Rally: What Is Driving Bulls In Indian Stock Market On January 24?

Sensex, Nifty In Big Rally: What Is Driving Bulls In Indian Stock Market On January 24?

Stock Market Rally: Indian stock market witnessed huge buying sentiment on Friday, taking Sensex higher by 466 points to even near 77,000 mark. Its counterpart Nifty 50 also jumped by nearly 142 points to near 23,350 levels. Bank Nifty which witnessed selling pressure in early trade, has recovered and is above 200 points. Major buying in indices like FMCG, IT, and metal stocks lifted the market. This will market’s third consecutive surge this week.

Sensex Price:

Sensex gained as much as 465.6 points to hit an intraday high of 76,985.95. Stocks like Power Grid, HUL, Infosys, Tata Steel, Bharti Airtel, and NTPC were top gainers. While stocks like Tata Motors, Zomato, M&M, Reliance, IndusInd Bank and L&T were top bears.

Nifty Price:

The 50-scrip index surged by 141.95 points to touch an intraday high of 23,347.30. Nifty IT, Nifty FMCG and Nifty Metal surged by 0.5% to 1%. Heavyweight stocks were top lifters of Nifty.

According to Akshay Chinchalkar, Head of Research, Axis Securities, the nifty rose for a second day yesterday following Wednesday’s hammer, but came off its session highs. The 23426 – 23471 remains a formidable upside hurdle for the benchmark, but the real action is occurring in the NSE mid- and smallcap indexes which significantly outperformed the nifty. The former traced an upside follow-through candle yesterday while the latter generated a “bullish piercing line” formation. All the headline indices remain below the major daily moving averages – 50/100/200, so it is important to tread with caution as the market starts to probe higher levels”.

Furthermore, Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, that the strength of the US market with S&P 500 setting yet another record high and the 10-year US bond yield remaining strong around 4.65% will continue to weigh on the Indian market. FIIs will continue to sell putting pressure on largecaps like banking. The irrationality in the market characterised by fair and even low valuations for largecaps like banking and excessive valuations in the broader market will have to reverse at some point of time. But we don’t know when that will happen.

Vijayakumar added, “The Q3 results of IT companies and the management commentary indicating improving prospects for the sector suggest that the sector is a safe bet now.”

MCX gold price also touched new record high by crossing over Rs 80,000 mark in 10 grams. The bullion hits all-time high of Rs 80,050 per 10 gram in early trade. Additionally, base metal prices were up as well.

MCX copper surged by 1.1%, while Aluminium futures climbed to near 1%. Both were near their record highs.

Explaining the surge in precious metals, Deveya Gaglani, Research Analyst-Commodities, Axis Securities said, prices in MCX are near record high as Trump trade policies and tariff plans created an uncertain environment in the market, which may boost safe-haven demand. Traders are now focusing on key economic data releases, including flash manufacturing, PMI, and the revised consumer sentiment Index, which are scheduled for this evening.

fbq('track', 'PageView');

Original news source Credit: www.goodreturns.in

You must be logged in to post a comment Login