August18 , 2022

Sensex jumps over 2,000 points in 4 days. Key drivers for the rebound explained

Related

Business News LIVE Today: Latest Business News, Share Market News, Economy & Finance News

Search Quotes, News, Mutual Fund NAVs Tata Steel INE081A01020, TATASTEEL,...

Business News LIVE Today: Latest Business News, Share Market News, Economy & Finance News

Search Quotes, News, Mutual Fund NAVs Tata Steel INE081A01020, TATASTEEL,...

Why Apple and Amazon results are important

Apple and Amazon added about $175 billion to...

Business News LIVE Today: Latest Business News, Share Market News, Economy & Finance News

Search Quotes, News, Mutual Fund NAVs Tata Steel INE081A01020, TATASTEEL,...

Share

[ad_1]

Indian stocks markets today rallied on the back of positive global cues, extending the recent streak of gains to the fourth day. The Nifty was back above 16,500 while Sensex rose over 600 points. In four sessions, Sensex has rebounded over 2,000 points. Apart from positive global cues, the cut in windfall tax on oil producers and refiners boosted the Street’s sentiment. The government also exempted petrol from an export levy less than a month after it imposed the two charges.

The changes will help companies such as Reliance Industries, Oil and Natural Gas Corp and Oil India Ltd, according to analysts. RIL shares were up about 3%.

According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the sharp pullback in Nifty from the June lows of 15183 is being aided by a flood of good news. “First, the US markets have rebounded sharply driven by impressive corporate earnings. Second, FPI selling appears to have bottomed out. The dollar index declining to 106.6 from above 108 is likely to persuade FPIs to buy rather than sell,” he said. 

FIIs have been net buyers of Indian equities in the past two sessions but so far in 2022, foreign investors have made net sales of India shares totalling more than $30 billion. 

“Results from the leading financials are likely to be good. After the recent correction IT valuations are attractive. If the US succeeds in avoiding a recession, IT will bounce back smartly,” Vijayakumar said. 

But he had a word of caution. “Investors have to exercise some caution because selling may reemerge at higher levels.” 

Prashanth Tapse, Vice President (Research), Mehta Equities Ltd, said the recent pullback has also been aided by short covering and value buying on hopes of fading FII selling in local equities, hopes of lower-than-expected US rate hikes, and a cooling of US dollar.

The dollar index has pulled back from recent highs but still remains at an elevated level. 

The cooling in crude prices has also lifted domestic market sentiment. Oil prices have whipsawed, supported by supply fears due to Western sanctions on Russia, but pressured by global central bank efforts to tame inflation which stoked fears that a potential recession could cut energy demand.

According to Nagaraj Shetti, Technical Research Analyst, HDFC Securities, Nifty faces some resistance around 16,600 while immediate support is placed at 16200 levels.

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
Download The Mint News App to get Daily Market Updates.

More
Less

Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

[ad_2]

Source link