Nifty 50 Extends Gains on Positive Global Cues and Easing Bond Yields

Nifty 50 Extends Gains on Positive Global Cues and Easing Bond Yields
Nifty 50 Extends Gains on Positive Global Cues and Easing Bond Yields
Nifty 50 Extends Gains on Positive Global Cues and Easing Bond Yields
Nifty 50 Extends Gains on Positive Global Cues and Easing Bond Yields

Nifty 50 Extends Gains on Positive Global Cues and Easing Bond Yields

Nifty 50 Extends Gains on Positive Global Cues and Easing Bond Yields

Nifty 50 Extends Gains on Positive Global Cues and Easing Bond Yields

The Nifty 50 and Sensex, key equity indices in India, continued their gains for the second consecutive session on October 12. This surge was driven by positive global cues and the easing of bond yields, ahead of the release of the US Federal Reserve’s meeting minutes and US inflation data.

US bond yields had previously reached their highest levels since 2007 but had cooled off as Federal Reserve officials indicated a potential end to rate hikes. The minutes from the Fed’s September meeting were set to be released on the day, and the US inflation data was expected to show a slight slowdown to 3.6% in September, down from 3.7% in August.

China’s Economic Stimulus and Positive Sentiment

Additional positive sentiment was derived from reports that China was planning to announce a stimulus package to boost its economy. Beijing considered raising its budget deficit and issuing more debt for infrastructure spending, which further bolstered market sentiment.

Market Performance

Nifty 50 opened at 19,767 and eventually closed at 19,811.35, up 122 points, or 0.62%. The Sensex opened at 66,376.42 and closed at 66,473.05, up 394 points, or 0.60%. Sectoral indices showed mostly positive trends, with the BSE Midcap index rising 0.55% and the Smallcap index gaining 0.77%. The overall market capitalization of BSE-listed firms increased to ₹321.6 lakh crore from ₹319.7 lakh crore, adding approximately ₹1.9 lakh crore to investor wealth in a single day.

Top Gainers and Losers

In the Nifty index, Hero MotoCorp, Grasim, and Wipro closed as the top gainers, while HCL Tech, Coal India, and LTIMindtree were the top losers.

Sectoral Performance

With the exception of Nifty PSU Bank and Nifty IT, all sectoral indices ended with gains. Nifty Bank closed 0.35% higher, and the Nifty Private Bank index rose 0.51%.

Expert Views

Market experts noted that positive global cues and moderating US bond yields improved sentiment. The focus had shifted back to the global macroeconomy, and if US treasury yields remained stable, it could encourage a risk-on strategy for investors.

Technical Analysis

Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas, observed that the daily momentum indicator had triggered a positive crossover. A dip in the market should be viewed as a buying opportunity, and the positive momentum was expected to continue, targeting 19,883. Short-term support was seen in the gap area formed in the range of 19,718 to 19,757.

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