Last update: May 02, 2023, 3:48 PM IST
Sensex today: Stock markets enjoyed a firm trading session on Tuesday, buoyed by strong fourth-quarter earnings, as investors await the Fed’s rate decision on Wednesday. The market as a whole outperformed with larger gains relative to the benchmark. Sector-wise, 17 of the 19 BSE indices ended with gains with autos, metals and IT topping the charts.
The S&P BSE Sensex hit a high of 61,486 and was flat for most of the trading session. Some profit taking towards the close saw the BSE benchmark pare its gains but settle another 242 points higher at 61,355. In the process, the 30-stock index has now rallied 1,788 points over the past eight consecutive trading sessions.
In the broader market, the BSE Midcap and Smallcap indices were up around 0.7% each, compared to a gain of 0.4% against the benchmark BSE index.
Tech Mahindra was the top gainer among Sensex 30 stocks, up nearly 3%. NTPC, Tata Steel, Maruti and Infosys were the other big winners, up more than 2% each. In contrast, Sun Pharma, UltraTech Cement, Bharti Airtel and Tata Motors slipped more than one percent each.
Among the sectors, the BSE Metal and Power indices rose around 1.5% each. The energy, IT and oil and gas indexes also jumped more than one percent each.
Shares of Adani Group were front and center as the companies reported fourth quarter results. Technical charts indicate a positive trend for some short-term stocks.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “India outperformed the rest of Asia and developed markets in April with a smart rally mainly helped by a sudden change in strategy by the FII who have become big buyers in the market. over the last two trading days. The important trigger for this change in FII strategy is the appreciation of the rupee. The Rupee which depreciated to 82.94 to the dollar at the end of February is now around 81.80 and is expected to appreciate further on India’s improving current account deficit. Also, strong corporate results, especially in the banking sector and record-breaking GST collections at Rs 1.87 lakh crores are contributing to the bullish sentiments. The market is resilient and the underlying current is bullish.”
Indian bond yields rise following US peers, Fed meets eyes
Yields on Indian government bonds rose in early trading on Tuesday, following a rise in US peers ahead of a widely anticipated rate hike by the Federal Reserve.
The benchmark 10-year bond yield of 7.26% 2033 was trading at 7.1274% at 10:00 am IST after closing at 7.1196% on Friday. The benchmark bond yield had plunged 20 basis points in April, on political pivot bets.
We could see some consolidation today and tomorrow as markets assimilate the impact of higher US yields and await the Fed’s policy decision and outlook, a public bank trader said.
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