According to Sunil Sharma, Chief Investment Officer, Sanctum Wealth Management, this past week's events reinforce a positive view on markets in the longer term.
The benchmark BSE Sensex advanced over 100 points in early trade Tuesday amid positive domestic and global cues and unabated foreign fund inflow.
The 30-share index was trading 98.04 points or 0.25 per cent, higher at 39,781.33. Similarly, the broader NSE Nifty rose 24.75 points, or 0.21 per cent, to 11,949.50.
In the previous session on Monday, the BSE gauge ended 248.57 points or 0.63 per cent higher at 39,683.29 — a new closing high for the index. While, the broader Nifty gained 80.65 points or 0.68 per cent to settle at 11,924.75 — a fresh closing peak for the NSE barometer. Top Sensex gainers include Yes Bank, Vedanta, Coal India, Sun Pharma, Bajaj Auto, IndusInd Bank, PowerGrid, Tata Steel, Axis Bank, L&T, Reliance Industries, and Tata Motors, rising up to 3.75 per cent.
While, HDFC, Hero MotoCorp, SBI, HUL, Kotak Bank, Bharti Airtel, Bajaj Finance, HCL Tech, ICICI Bank and ITC fell up to 1.02 per cent. Market mood has been euphoric since the BJP-led National Democratic Alliance (NDA) won the general elections.
According to Sunil Sharma, Chief Investment Officer, Sanctum Wealth Management, this past week’s events reinforce a positive view on markets in the longer term.
“Given the large amount of groundwork already in place, we expect the next five years to surprise to the upside on earnings, once remaining PSU bank issues are resolved,” he said.
Positive cues from global markets and sustained foreign fund inflow too boosted investor sentiment here, traders said. Foreign institutional investors bought equity worth Rs 1,215.36 crore on Monday, while domestic institutional investors sold shares to the tune of Rs 327.86 crore, provisional data available with stock exchanges showed.
Elsewhere in Asia, bourses in China, Japan and Korea were trading on a positive note in their respective early sessions. Benchmarks on Wall Street too ended in the green in Monday’s session. On the currency front, the rupee depreciated 21 paise to 69.72 against the US dollar. Brent crude, the global benchmark, slipped 0.15 per cent to 68.67 per barrel.
The rupee opened on a weak note and declined by 22 paise to 69.73 against the US dollar in early trade Tuesday, owing to increased demand for the greenback from importers and banks.
Forex traders said the strengthening of the greenback vis-a-vis other currencies overseas and weak opening in domestic equities added pressure to the local unit.
However, foreign fund inflows and easing crude prices restricted the fall in the domestic currency. The rupee opened weak at 69.68 at the interbank forex market and then fell further to 69.73, down 22 paise over its last close.
The rupee had settled at 69.51 against the US dollar Monday. Meanwhile, brent crude futures, the global oil benchmark, eased 0.11 per cent to USD 70.03 per barrel. Foreign institutional investors (FIIs) infused Rs 1,215.36 crore on a net basis Monday, provisional data showed.
Domestic bourses opened on a negative note Tuesday with benchmark indices Sensex trading 33.21 points down at 39,650.08 and Nifty down 23.45 points at 11,901.30.
Source: Read Full Article