The Economic Times daily newspaper is available online now.

    Sensex rises 100 points ahead of Powell's speech, Q2 GDP print

    Synopsis

    “An important feature of the ongoing rally which has taken Sensex and Nifty to record highs is that this is a mature rally led by high quality stocks in performing sectors. There is no celebration in the market because this rally has largely bypassed the broad market. While the Nifty is up 7.2% YTD, Nifty Small cap Index is down by around 12% YTD,” V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said.

    Sensex rises 100 points ahead of US Fed outcome, Q2 GDP printReuters
    Amid nervousness ahead of Federal Reserve Chair Jerome Powell’s speech and release of India’s Q2 GDP data, benchmark equity indices opened flat on Wednesday.

    BSE Sensex was trading 127 points or 0.20% higher at 62,808. Nifty50 was at 18,659, up 41 points or 0.22% at around 9.18 am.

    “An important feature of the ongoing rally which has taken Sensex and Nifty to record highs is that this is a mature rally led by high quality stocks in performing sectors. There is no celebration in the market because this rally has largely bypassed the broad market. While the Nifty is up 7.2% YTD, Nifty Small cap Index is down by around 12% YTD,” V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said.

    “So, the vast majority of retail investors whose portfolios are predominantly smallcap oriented, have not benefited from this rally. This experience also underlines the importance of investing in quality stocks. Since the valuations are elevated from a near-term perspective, there is no scope for the rally to continue unabated,” Vijayakumar added.

    The Fed chief’s observations today will be important for global markets. The market is expecting indications of slowing down the rate hikes but any comments to the contrary will be negative, he said.

    Among Sensex stocks, Dr Reddy’s, M&M, ICICI Bank, Sun Pharma, Kotak Bank, HUL and Bajaj Finserv were the top gainers, rising about 0.5-1%. Asian Paints, L&T, HDFC, TCS, ITC, Nestle also opened with gains.

    On the other hand, Infosys, Power Grid, Maruti, HCL Tech, Tech Mahindra and Bajaj Finance opened lower.

    Sectorally, Nifty Metal rose 0.79% while Nifty Auto surged 0.63%. Nifty FMCG and Nifty Financial Services also opened higher. In the broader market, Nifty Midcap50 increased 0.31% while Smallcap50 advanced 0.27%.

    On Tuesday, Dow Jones closed flat while the S&P 500 declined 0.16% and Nasdaq fell 0.59% with losses in tech stocks ahead of Powell’s speech.

    In early trade in Asian markets, Japan’s Nikkei 225 dropped 0.46% while South Korea’s Kospi rose 0.72% and China’s Shanghai Composite advanced 0.21%.

    The Indian rupee depreciated 0.18% to 81.58 against the US dollar in early trade on Wednesday. Meanwhile, the dollar index, which tracks the movement of the greenback against a basket of six major world currencies, decreased 0.15% to 106.65 level.

    Brent crude February futures increased 1.07% to $85.14 a barrel, while U.S. West Texas Intermediate (WTI) crude futures surged 1.09% to $79.05 a barrel.

    (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)



    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more


    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
    The Economic Times

    Stories you might be interested in