MARKET COMMENT Jayant Manglik, President, Religare Broking It's been an exceptional start of the expiry week as Nifty gained over a percent and settled closer to 11,700. It opened gap up in line with from other global indices, mainly in reaction to the latest statement from the US Fed wherein they've hinted that further rate hikes would be gradual. Besides, recovery in rupee combined with encouraging data of foreign fund flow added to positivity. Almost all the sectoral indices, barring media and realty, contributed to the rally however broader market showed mixed trend. Markets are steadily moving higher despite mixed cues and this clearly indicates upbeat sentiment among the participants. However, we feel participants, especially traders, should gradually reduce their positions on every rise in Nifty from hereon and focus more on stocks. Banking, auto and pharma are still our top picks for short term trades
The S&P BSE Sensex ended the day at an all-time closing high of 38,694, up 442 points while the broader Nifty50 index settled at a new closing high of 11,691, up 135 points. In intraday deals, the broader Nifty50 index climbed over 1.5 per cent to hit 11,700 for the first time ever, while the S&P BSE Sensex also hit a record, rising over 1 per cent to 38,736.88
Among sectors, shares of public sector banks (PSBs) are in focus with Nifty PSU Bank index gaining more than 2% on Monday ahead of the Allahabad Court verdict on stressed power assets as the Reserve Bank of India (RBI) deadline ends today. The RBI’s February 12 circular said all stressed assets will either get resolved by August 27 or get taken to the NCLT.
Asian shares were also higher, boosted by record Wall Street highs last week that followed reassuring comments from the US Federal Reserve Chair, and as stock markets in China gained after the country’s central bank tweaked its management of the yuan.
(With inputs from Reuters)