On the last day of the financial year and first day of the April series, the markets soared. Nifty touched a day’s high of 17,326, up 1.4% while Sensex gained 870 points to trade at the 58,837 level. All the sectoral indices and broader markets are trading firmly in the green as well. The top sectoral gainers are Bank Nifty and Nifty IT, which are higher by up to 1.75%.
“The relative stability of the world markets is one of the main causes why the markets are gaining today. In addition, FIIs began some cash market buying and some short covering in the F&O market. But, given that they began the April series with 91% of their positions in index futures short, there is still room for a significant short-covering move. Due to the rise in interest rates in the USA, the Nasdaq was the global equity market leader in the previous decline. But, it has already recovered 20% from its bottom, signalling the conclusion of the bear market. It also suggests that the market anticipates an impending peak in interest rates in the USA,” said Santosh Meena, Head of Research, Swastika Investmart.
“India’s major equity indices manage to close in green after three consecutive closes for weekly as well as monthly negative closing. Positive clues from the global equity market and rapid buying in Index heavyweight Reliance Industries (RIL) which rallied over 4% today lead the benchmark index Nifty-50 higher. The recent upward trend in the Indian Stock Indices is being driven by improvement in the current-account deficit and the RBI’s optimistic GDP estimate. However, market is expected to remain under pressure as it continues with the Lower-High & Lower-Low formation. It is too early to say that the correction is over in the market, there is a chance that the US economy could enter a recession as credit markets in the US continue under pressure. Unless the Nifty closes above 17800, there is little chance of the bullish trend in the market,” said Akhilesh Jat, Category Manager – Equity Research, CapitalVia.