Sensex Today: Amid positive cues from Asian markets and focus to the Federal Reserve’s policy meeting this week, benchmark equity indices opened higher on Tuesday. The S&P BSE Sensex rallied to a high of 61,290, and ended the day with a gain of 375 points. In the process, the BSE benchmark index has vaulted 1,578 points in the last four straight trading sessions.
The NSE Nifty settled 133 points higher at 18,145 on Tuesday. Going ahead, FIIs flows, ongoing results season and the US Federal Reserve meeting outcome on Wednesday are the key factors to watch out.
Among the Sensex 30 shares, power majors – NTPC and PowerGrid were the top gainers, up 5.3 per cent and 3 per cent, respectively. Dr.Reddy’s, Infosys and TCS also jumped over 2 per cent each. Sun Pharma was also up 2 per cent after the pharma major reported double-digit top line growth. READ MORE
On the flip side, Axis Bank fell nearly 4 per cent following a block deal on the BSE wherein 1.2 per cent equity of the company changed hands.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “An interesting trend in the market is that FIIs and DIIs have reversed their roles: FIIs have turned buyers and DIIs have turned sellers in recent days. Yesterday’s FII buy figure of Rs 4178 crore is their largest buy figure in recent months. The implication of this role reversal by FIIs is that this has triggered short covering in stocks like the HDFC twins where FIIs are major holders. This trend can take the market up further.”
“Recent good Q2 results of large-caps like Maruti, L&T and Bharti Airtel can give fundamental support to the rally. Since Nifty is only 3% away from its all-time high, a charge to record highs cannot be ruled out. But DIIs are likely to sell at higher levels and many retail investors might be tempted to book some profits. Globally markets are looking forward to the Fed commentary after its meeting on November 1st and 2nd. A 75 bp hike in rates is already discounted by the market. If the Fed indicates moderation in rate hikes, going forward, markets would positively respond to that,” he said.
Global Cues
Asian shares rose and bond yields firmed in early trade on Tuesday despite mild losses from Wall Street overnight as investors turned their focus to the Federal Reserve’s policy meeting this week for hints on what comes next.
Tokyo stocks opened higher on Tuesday, shrugging off US falls, as investors awaited earnings reports by major Japanese firms including Toyota. The benchmark Nikkei 225 index was up 0.13 percent, or 36.14 points, at 27,623.60 in early trade, while the broader Topix index added 0.22 percent, or 4.23 points, to 1,933.64.
US stocks lost ground on Monday, with the major indexes closing out a strong month of gains on a weaker foot, as investor focus turned to the Federal Reserve’s policy meeting this week.
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