Buying value drives stock markets higher

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Mumbai: Benchmarks rebounded on Wednesday after a two-day decline, with BSE Sensex and NSE Nifty climbing almost 1% each, following heavy buying in IT and banking stocks amid a positive trend in European markets. At the closing bell, BSE’s benchmark 30-stock index jumped 547.83 points or 0.99% to settle at 55,816.32. During the day, it climbed 584.6 points or 1% to 55,853.09. The broader NSE Nifty advanced 157.95 points or 0.96% to 16,641.80.

“The Indian market will react to global trends in line with the outcome of the FOMC (Federal Open Market Committee) meeting. We are in a rally over the last month and a half assuming a lot is factored into the price. The market has not factored into a recession as valuation continues to trade slightly above the long-term trend Buying value should be the essence of investing until recession risk subsides said Vinod Nair, Head (Research) at Geojit Financial Services.

“Domestic markets regained positive momentum after taking a two-day break. Strong results from index heavyweights like Asian Paints, L&T, Maruti and Tata Steel boosted investor confidence,” said Siddhartha Khemka. , Head (Retail Research), Motilal Oswal Financial Services Ltd.

“Nifty broke a two-day losing streak on July 27 ahead of the outcome of the US Fed meeting that evening. In the process, Nifty was one of the best performers in the Asian region,” said Deepak Jasani, Head (Retail Research), HDFC Securities. “Markets regained ground as bulls came out of the woodwork ahead of the US FOMC policy decision later. However, a volatile session is expected on Thursday as the street reacts to the Fed’s outcome and expiry turbulence focus will also be on the second quarter U.S. GDP which will be released on July 28. The expiry of the July F&O series on Thursday will also keep markets volatile,” said Prashanth Tapse, vice-president. Senior President (Research), Mehta Equities Ltd.

“Ahead of a critical FOMC meeting, markets were buoyant on hopes that the monetary tightening process was coming to an end. Cooling commodity prices helped auto companies and consumer packaged goods names, while Q1 results have been quite encouraging so far,” said S Hariharan, Head (Sales Commerce), Emkay Global Financial Services.

“Investors seemed to have priced in a 75 basis point rate hike by the US Fed, while the rally in other Asian indices helped the overall market rally. monthly F&O expiry tomorrow, Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd, noted.

Foreign institutional investors (FIIs) remained net sellers as they offloaded shares worth Rs 436.81 crore on Wednesday, according to exchange data.

In the broader market, the BSE mid-cap gauge jumped 0.90% and the small-cap index climbed 0.38%. Among BSE sector indices, healthcare jumped 1.73%, IT (1.34%), basic materials (1.17%), industrials (1.12%) and teak (1.12%). Telecom was the only laggard. Meanwhile, the rupee fell 13 paise to close at 79.91 (provisional) against the US dollar on Wednesday.

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