Why Market is Rising Today? The key benchmark indices posted some handsome gains in the early session on October 18 on the back of strong global cues. Sensex jumped over 700 points on Tuesday amid positive global cues. The market capitalisation of all listed companies on BSE jumped over Rs 2.22 lakh crore to Rs 273.96 lakh crore.
Both the Sensex and the Nifty stayed in the green for the second straight session today. Among the sectors, auto, capital goods, FMCG, IT and power indices added a per cent each, while the midcap and smallcap indices added half a per cent each.
“In India bulls are gaining strength aided by India’s growth outperformance, good early Q2 results, declining FII selling, steadily rising DII buying and the optimism ushered in by the festive season. Bank Nifty is resilient with the potential to take banking stocks as well as Nifty higher,” said Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
US Markets
US stocks kicked off the trading week on Monday with a rally after Britain reversed course on an economic plan, while Bank of America was the latest financial company to post solid quarterly results, which lifted optimism about the corporate earnings season. The Dow Jones Industrial Average rose 550.99 points, or 1.86 per cent, to 30,185.82, the S&P 500 gained 94.88 points, or 2.65 per cent, to 3,677.95 and the Nasdaq Composite added 354.41 points, or 3.43 per cent, to 10,675.80.
Bank of America Corp shares surged 6.06 percent as the lender’s net interest income was buoyed by rising interest rates in the quarter, even though it added $378 million to its loan-loss reserves to buttress against a softening economy.
ACC on Monday reported a consolidated net loss of Rs 87.35 crore for the July-September period, hurt by higher fuel and power expenses. The company had posted a consolidated net profit of Rs 450 crore in the year-ago period.
Healthy Q2 Earnings
The good early Q2 results are also giving strength to bulls on Dalal Street. Even on Wall Street, the Bank of America boosted investor confidence in its quarterly report where it reported a surge in net interest income due to rising interest rates.
Rupee Vs Dollar
After depreciating by 11 paise on Monday, the Indian rupee gained 22 paise to 82.08 against the US dollar today. The dollar index plunged 1 per cent on Monday to just above the 112 level. The gauge’s slide came alongside a 2.7 per cent rally in US equities, with the fall in UK yields boosting demand for risk assets.
Nifty Technical Outlook
Nifty had formed a long bull candle on Monday, which indicated the comeback of bulls after a consolidation movement of the previous session. “Nifty continues to show mild strength and the next resistance could come in at 17,497-17,532 band while support could come in at 17,142-17,170 band,” said Deepak Jasani, Head of Retail Research, HDFC Securities.
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