The key benchmark index BSE Sensex surged over 400 points and the broader index NSE Nifty reclaimed 7,700 mark in Wednesday’s trade on account of buying in frontline bluechip counters. The BSE Sensex closed 438.12 points up at 25,338.58, while NSE Nifty settled 138.20 points up at 7,735.20.
Below are 5 reasons that supported market sentiments in today’s trade
Rate cut hopes: Investors are patiently waiting for the Reserve Bank of India (RBI) monetary policy review due on April 5 amid hopes of a 25 basis points cut in interest rates. Traders were seen piling up position in realty, metal and banking sector stocks.
Buying in steel stocks: Hectic buying activity was witnessed in steel stocks after the government announced an extension of safeguard duty of up to 20 per cent on certain steel products till March 2018, a move seen as a bid by the policymakers to guard the domestic industry against cheaper imports from China.
Firm global cues: On the global front, the Asian markets had traded mostly in green, while the European markets were trading on optimistic note. Shreyash Devalkar, fund manager, equities, BNP Paribas Mutual Fund, said, “Strong global cues boosted investor sentiment after the US Federal Reserve’s chief, Janet Yellen, stated that conditions relating to poor economic readings and weaker foreign growth are a cause for concern and that the current environment might not be conducive for aggressive interest rate hikes in the US.”
Rupee movement: Indian rupee appreciated by 16 paise to 66.38 against the US dollar in early trade on Wednesday on increased selling of the
American currency by exporters and banks amidst continued foreign fund inflows.
GST push: Sentiments remained firm with Finance Minister’s statement that he will reach out to the Congress again to persuade it to support the much delayed GST bill in second half of the Budget Session beginning next month.