The markets opened on a positive note with the Sensex jumping by 1,139 points as of trading at 11 am on the Bombay Stock Exchange. The National Stock Exchange Nifty has also surged by 2 per cent to 17,220 levels. This comes hours after the Wall Street rose to its best day in months after some weak data on the economy had raised possibility that the Federal Reserve won’t have to turn more aggressive in raising interest rates.
Even the Asian markets soared due to the rally in US shares. Japan’s benchmark Nikkei added 2.3 per cent in the early morning trading to 26,811.08. Australia’s S and P/ASX 200 surged 2.4 per cent to 6,610.50. South Korea’s Kospi jumped 2.0 per cent to 2,198.44. Markets in Hong Kong and Shanghai were closed for holidays, AP reported.
On Monday, the Sensex had fallen by 638 points to close at 57,788.81 while the Nifty fell by 1.21 per cent to settle below 17,000.
VK Vijayakumar, the chief investment strategist at Geojit Financial Services, told Hindustan Times’ business website Livemint that the ‘risk off risk on’ texture of the market is due to the fast changing economic and the market signals. He cited that the market sentiments have turned positive due to the declining trend in US dollar and the US bond yields. He expressed hope that the foreign institutional investors will again turn big buyers in India.
Vijayakumar added that the financial and auto firm shares are set to led the uptrend, and the capital goods are likely to join the rally while telecom is on the strong wicket.
The investment strategist pointed out that the Sensex had given positive returns in the last eight out of ten years in October, and that the markets have a record of recovering in the festive month.
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