Indian equities continued an upward march for the second straight session on Tuesday led by renewed buying interest in beaten-down IT stocks, select auto and financial stocks too logged notable gains. Strong global cues and some positive commentary from analysts also helped the market recover from the recent onslaught. There were no negative cues from the US market as Wall Street was shut overnight on account of a public holiday. Around 12 pm, The Sensex was up 855.20 points or 1.66 per cent at 52453.04, and the Nifty was up 257.80 points or 1.68 per cent at 15608. That said, investors are keenly awaiting the Federal Reserve Chair Jerome Powell’s two days testimony to US lawmakers in Washington later this week.
Key Factors Behind Today’s Stock Market Rally
Jump in S&P500 Futures
S&P500 September futures were trading at 3,736 today, up 60.25 points or 1.64 per cent, hinting at a positive start for the US stocks after a long weekend. Asian markets too were trading higher, with Japan’s Nikkei rallying 2.44 per cent, followed by Taiwan’s TWSE (2.24 per cent), Hong Kong’s Hang Seng (up 1.5 per cent) and Korea’s Kospi (up 1.24 per cent).
Buying Seen At Cheap Valuations
Equities have been battered black and blue in the last few months, and thus many quality names are also available at bargain prices. This has attracted long-term investors into the market. This low level of buying is one of the main reasons for the surging market today.
Many analysts have come out with recommendations that are available at ‘cheap’ valuations. For instance, Jefferies believes IndusInd Bank, ICICI Pru Life, LIC Housing, Piramal Enterprises, Godrej Prop, DLF, Infosys, Coforge, Jubilant Food, Godrej Consumer, Dixon Tech, Crompton Electricals, Voltas, Fortis Healthcare and Gland Pharma are top picks.
The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
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