Stock Market today: After a sharp gain on Friday, Indian equities indexes began the week cautiously as investors assessed and realigned their positions in anticipation of domestic inflation and a flurry of earnings announcements amid improved market risk sentiment.
The BSE Sensex index rose 76.82 points to 61,871.86, after having started the day lower.
In a tumultuous trading session early on Monday, the BSE Sensex index, which had opened lower, increased by 76.82 points to 61,871.86. The larger NSE Nifty was up 0.21 percent at 18,387.35.
The gains made on Friday, when both benchmark indices reached 52-week highs, continued.
Nevertheless, despite the widespread optimism for global risk assets, domestic retail inflation data that is due after the trading day’s hours will probably hold the markets in check throughout today’s session.
SpiceJet, Biocon, Apollo Tyres, conglomerates Godrej Industries and Grasim Industries are yet to announce their earning
Additionally, over a thousand companies are anticipated to announce their earnings later in the day. Among them are the low-cost carrier SpiceJet, the pharma firm Biocon, the tyre manufacturer Apollo Tyres, the conglomerates Godrej Industries and Grasim Industries, and others.
“Despite a gloomy global background, markets have held up well due to resilience in earnings. Peak valuations, on the other hand, continue to be a barrier, keeping markets range-bound in the short term, according to Hemant Kanawala, Head of Equity at Kotak Mahindra Life Insurance.
Due to lower-than-expected US inflation, the Federal Reserve abruptly changed its policy course for the upcoming year
The Federal Reserve abruptly changed its policy course for the upcoming year last week in response to lower-than-anticipated US inflation statistics for October, which caused the dollar to plummet and ignited a significant rally in stocks, risky assets, and bonds.
The two-year Treasury yield fell 30 basis points on Friday, the most since 2008, and the Nasdaq gained 8% for the week. The dollar dropped 4%, posting the fourth-largest weekly decline since the era of freely floating exchange rates began more than 50 years ago.
While Japan’s Nikkei index remained constant, the stock market in South Korea increased by 0.3%. S&P 500 futures decreased 0.2% while Nasdaq futures declined 0.3%.
Federal Reserve Governor Christopher Waller suggested that the Fed might start to think about raising interest rates more gradually.
According to Bruce Kasman, Head of Economic Research at JPMorgan, “The CPI negative surprise coincides with a broad range of indications pointing to a downshift in global inflation that should promote a slowing in the pace of monetary policy tightening at the Fed and elsewhere.”
“This optimistic message needs to be tempered by the knowledge that downturns in inflation will be too small for central banks to declare mission completed, and more tightening is likely on the horizon,” the authors write.
Stock Market today: A sign of positive market vibe
Additionally, US Vice President Joe Biden and Chinese President Xi Jinping will have their first face-to-face meeting since the US President took office on Monday at the G20 summit in Bali.
It’s fair to say that relations between the two superpowers are frosty, so any signs of thawing might support the positive market vibe that has been spreading since last week.
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