The markets are on a high today. The Nifty has scaled past 23,100 for the first time after 23 sessions, up over 1% and the Sensex too has joined the party. The Benchmark 30-stock index is up 800 points and is inching closer to the 76,300 mark. What’s particularly heartening is the fact that the rally is not just limited to the large caps. The BSE Small Cap and the BSE Midcap Indices are also up over half a percent each. Titan and Bharti Airtel are the stars of the rally. Tech, select bluechips and auto stocks shine.
“Our markets have been steadily rising for the past four days, with today’s strength primarily driven by short covering above the levels of 23000/75800. A key factor contributing to this short covering is the consistent appreciation of our currency, which has moved from 87.92 to 86.33. This increase has led to a reduction in Foreign Institutional Investor (FII) selling activity in the market. After nearly two months, most traders (FIIs) have partially covered their short positions in the Futures and Options (FNO) segment. Additionally, positive trends in US stock futures and a decline in the 10-year bond yield to 4.24% are also supporting the bullish sentiment,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
Here are 3 key reasons why the stock market is up today
ALSO READ‘We expect FIIs to continue to sell for some more time’- Nilesh Shah Fed indicates two rate cuts later this year
Wall Street ended higher on March 19 after the US Fed held interest rates steady and indicated possibility of another half percentage point of rate cuts through 2025. Given the fact that the Fed normally cuts quarter percentage points in one go, this comment from Fed can be interpreted as two potential rate cuts later this year. This cheered investor sentiment across Asia.
China keeps rate steady
Asian markets closed in the positive zone on the back of steady US cues and Fed commentary. Additionally what helped sentiment is the fact that China also held rates steady in sync with the US Fed. PBOC, the Chinese Central Bank highlighted the need to defend the yuan as it faces “downward pressure amid threats of higher tariffs.”
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