The market is charging ahead with enthusiasm. The belief among bulls that the Indian market has completed its correction phase is driving this optimism. However, not everyone is convinced that the correction is over. Many still argue that global uncertainties will continue to shake the market. Nevertheless, Nifty is poised to break past 23,000 with renewed excitement today. A comforting factor is the drop in crude oil prices, which have once again neared 70 dollars per barrel.
In the derivatives market, the Gift Nifty closed at 22,930.50, having briefly risen to 22,987 in the morning before dipping slightly. This indicates that the Indian market is likely to open with modest gains today.
European markets ended on a positive note yesterday. Meanwhile, the German Parliament passed a constitutional amendment to increase public debt.
In geopolitical developments, Donald Trump and Vladimir Putin reportedly reached an agreement for a partial ceasefire in Ukraine. However, this did not have a significant impact on the US markets, which remained focused on the Federal Reserve Board’s decision set to be announced on Wednesday at 2 pm US time.
The general expectation is that interest rates will not be cut today, but the market is keenly watching whether reductions will come in April or June.
On Tuesday, the US markets witnessed a decline. The technology sector was particularly hit, with Tesla falling by 5.34 percent, Nvidia by 3.43 percent, and Meta by 3.73 percent. The Dow Jones index dropped by 260.32 points, or 0.62 percent, closing at 41,581.31. The S&P 500 lost 60.46 points, or 1.07 percent, ending at 5,614.60, while the Nasdaq Composite tumbled by 304.55 points, or 1.71 percent, closing at 17,504.12.
However, US futures were trading in positive territory this morning. The Dow Jones was up by 0.18 percent, the S&P by 0.25 percent, and the Nasdaq by 0.37 percent. Asian markets also opened higher today, with Japan’s Nikkei rising by half a percent and South Korea’s Kospi climbing by 0.75 percent. However, Hong Kong and Chinese indices were in decline.
The Indian market experienced a strong rally on Tuesday, with the major indices climbing by over one and a half percent. Mid-cap stocks surged by 2.2 percent, while small-cap stocks soared by 2.7 percent. Foreign investors made modest purchases, contributing to the positive sentiment.
Many investors believe that the correction phase in the Indian market is over and that this is an opportune moment to start buying again. However, others argue that considering the persistent global uncertainties, it would be premature to conclude that the market is firmly on an upward trajectory.
Adding to concerns, the US markets declined yesterday, and several analysts and agencies are warning that the US may be heading towards an economic recession due to the ongoing trade war.
A US recession would likely slow growth in other countries, reducing global trade volumes, which could, in turn, impact India’s economic expansion in the coming quarters.
Tuesday’s session saw a broad-based rally across all industry sectors. Realty, media, FMCG, public sector banks, IT, auto, metals, healthcare, pharma, private banks, financials, consumer durables, and oil and gas sectors all posted significant gains.
Nifty rose by 325.55 points, or 1.45 percent, closing at 22,834.30. The Sensex climbed by 1,131.31 points, or 1.53 percent, to close at 75,301.26. Bank Nifty surged by 960.35 points, or 1.99 percent, finishing at 49,314.50. The mid-cap index jumped by 2.18 percent, adding 1,055.10 points to reach 49,516.90, while the small-cap index soared by 2.71 percent, gaining 406.30 points to close at 15,374.70.
On Monday, foreign investors were net buyers in the cash market, purchasing stocks worth ₹694.57 crore. Domestic funds and financial institutions were also active, making net purchases worth ₹2,534.75 crore.
Market breadth was in favour of the bulls. On the BSE, 2,766 stocks advanced, while 1,276 declined. On the NSE, 2,288 stocks moved higher, whereas 646 declined.
The sentiment remains bullish. After gaining two percent in just two days, technical analysts suggest that Nifty could now target the 23,000 to 23,400 range. For today, support is expected at 22,670 and 22,600, while resistance may be encountered at 22,865 and 23,020.
Reports suggest that French insurance giant Allianz, which recently ended its long-standing partnership with Bajaj Group, is set to form an alliance with Reliance’s Jio Financial Services. Negotiations have been ongoing for months, and Allianz has now decided to exit its 24-year-old joint venture with Bajaj.
Meanwhile, Life Insurance Corporation of India (LIC) is preparing to acquire a significant stake in a health insurance company. LIC’s CEO Siddhartha Mohanty has stated that the announcement will be made later this month.
Gold prices have surged past $3,000 per ounce, setting a new record. In the New York market, gold closed at $3,035.40 per ounce yesterday. However, prices dipped slightly to $3,029 per ounce this morning. Given the continued economic and trade uncertainties, many analysts expect further increases in gold prices.
In Kerala, gold prices rose by ₹320 per sovereign on Tuesday, reaching a record high of ₹66,000. A weaker US dollar has helped limit further price increases. More price hikes are expected today.
Silver prices have also been climbing, reaching $33.98 per ounce.
The US dollar index declined once again, closing at 103.24. This morning, it stood at 103.34. The Indian rupee also posted gains on Tuesday, with the dollar slipping by 23 paise to close at ₹86.57. This marked the fourth consecutive day of gains for the rupee. Meanwhile, the Chinese yuan appreciated to 7.23 against the US dollar.
US treasury yields edged slightly higher, but investment returns declined. The yield on 10-year US treasury bonds stood at 4.285 percent.
Crude oil prices eased slightly following signs of a possible partial ceasefire in Ukraine. Brent crude, which had settled at $71.07 per barrel, dropped to $70.42 per barrel at close. This morning, it slipped further to $70.37 per barrel. WTI crude was trading at $66.69, while UAE’s Murban crude stood at $71.71.
Cryptocurrencies saw another dip. Bitcoin fell to $82,750, while Ethereum, which had climbed to $1,950, dropped to around $1,930.
Among industrial metals, copper and lead were the only exceptions, registering gains. Copper rose by 0.55 percent to $9,852.83 per tonne. However, aluminium fell by 1.31 percent to $2,658.03, nickel declined by 1.57 percent, zinc by 1.22 percent, and tin by 0.04 percent. Lead gained 0.54 percent.
Sensex 30: 75,301.26 (+1.53%)
Nifty 50: 22,834.30 (+1.45%)
Bank Nifty: 49,314.50 (+1.99%)
Mid-Cap 100: 49,516.90 (+2.18%)
Small-Cap 100: 15,374.70 (+2.71%)
Dow Jones: 41,581.31 (-0.62%)
S&P 500: 5,614.60 (-1.07%)
Nasdaq: 17,504.12 (-1.71%)
US Dollar (₹): 86.57 (-₹0.23)
Gold (Ounce, $): 3,035.40 (+$33.60)
Gold (Sovereign, ₹): 66,000 (+₹320)
Crude Oil (Brent, $ per barrel): 70.42 (-$0.65)
