Bullish run continues as stock market opens on high note
Dec 15, 2023
Mumbai (Maharashtra) [India], December 15 : In a continuation of the positive and upward momentum, the stock market opened on a high note on Friday, with both the Sensex and Nifty poised for sustained upward momentum.
The optimism is fueled by positive global market conditions and expectations of an accommodative monetary policy from the US Federal Reserve.
The Sensex saw a robust opening, gaining 261.43 points to reach 70,764.99, while the Nifty 50 opened 83.30 points higher at 21,266.00. Among the Nifty companies, 40 advanced, while 10 faced declines.
Leading the gains among Nifty firms were Hindalco, JSW Steel, UPL, Tata Steel, and Infosys. Conversely, HDFC Life, Nestle India, BPCL, Kotak Bank, and Apollo Hospitals experienced losses.
The upward trend extended throughout the trading day, resulting in the Sensex achieving a record high and closing at 70,514.20, reflecting a gain of 929.60 points or 1.34 per cent. Simultaneously, the Nifty 50 surged by 256.35 points or 1.23 per cent, concluding at 21,182.70.
Varun Aggarwal, founder and managing director, Profit Idea said, "This upward trend is propelled by the Federal Reserve's dovish stance, hinting at potential rate cuts in 2024, along with a decline in US bond yields. Favorable domestic factors, including an upgraded GDP forecast for India and lower global oil prices, further contribute to this growth".
Despite a slight uptick in retail inflation in November, a detailed analysis of the inflation basket reveals that nearly 49.3 per cent of items fall within the central bank's inflation tolerance range of 2-6 per cent.
HDFC Bank Ltd is anticipated to be a focal point on Friday, December 15, owing to expected FTSE-related inflows of approximately USD 450 million. The index aggregator FTSE is undergoing a rebalancing, injecting a substantial USD 500 million into the Indian market, with a significant portion expected to flow into HDFC Bank.
Aggarwal said, "Asian shares reached a four-month peak, supported by sharp declines in the dollar and US yields, extending the rally fueled by the Fed. However, potential resistance to rate cuts from central banks in Europe may impact global pivot aspirations".
On the global front, Asian shares reached a four-month peak, supported by sharp declines in the dollar and US yields, extending the rally fueled by the Federal Reserve. However, potential resistance to rate cuts from central banks in Europe may impact global pivot aspirations.
The Indian rupee rebounded from all-time lows, closing at 83.30 against the US dollar on Thursday, marking a gain of 10 paise against the greenback. This currency recovery adds another positive element to the overall market sentiment, further reinforcing the optimistic outlook for the Indian stock market.
