Sensex clocks 36,000-mark, Nifty shines at over 10,800-level; Yes Bank sees all-time low, Indian Rupee strengthens
Stock markets were shining for the second consecutive day today, as Sensex jumped nearly 300 points, charging past the 36,000-mark. At around 0945 hours, the benchmark Sensex was trading at Rs 36,0117.15, up by 300.20 points or 0.84%. Nifty 50 was trading at 10,807.95, up by 79.10 points or 0.74%. In pre-market opening session, the Sensex was trading at 35,977-levels. The performance of Indian markets comes ahead of India's Gross Domestic Product (GDP) numbers announcement for second fiscal of FY19 (Q2FY19), which will be presented tomorrow. Also, positive global markets added to the feelgood domestic sentiment. According to a Reuters report, Asian stocks advanced on Thursday, tracking a surge on Wall Street, after the chairman of the U.S. Federal Reserve suggested it may be nearing an end to its three-year rate tightening cycle, boosting interest in riskier assets. Meanwhile, Indian rupee strengthened against dollar at interbank forex market quite impressively.
Gainers on Sensex included Vedanta taking the lead as it was trading at Rs 199.75 per piece up by 3.52%. The company was joined by Tata Steel at Rs 537.50 per piece above 2.58%, Reliance Industries at Rs 1172.75 per piece up 2.31%, Power Grid at Rs 187.40 per piece and IndusInd Bank at Rs 1641 per piece higher by 1.67%.
On the other hand, the losers list on Sensex involved, no surprise, Yes Bank taking top spot. The bank has touched a new low today, and was trading at Rs 151 per piece down by 6.62%. Reason behind such decline is due to negative ratings given by major agencies like Moody's Investor Services, ICRA and Care Ratings.
In losers list, Yes Bank was joined by ONGC trading at Rs 139.30 per piece down by 2.25%, Coal India at Rs 244.85 per piece down 1.21%, SunPharma at Rs 483.75 per piece down 0.53% and NTPC at Rs 143 per piece below 0.35%.
Talking about today's trading session, analysts at Standard Chartered said, "Indian markets are likely to see a gap-up opening at the opening bell following a dovish comment by US Fed Chair Jerome Powell which pushed the US indices higher by up to 3% overnight. The technical supports are placed at 10675 and 10600 while upside resistances are at 10850 and 10920 levels."
On sectoral front, Standard Chartered said, I.T, technology and media sector lead the gains while telecom, industrials, FMCG, realty and metals were laggards. Mid cap and small cap index underperformed Nifty50 index. Advance decline ratio was negative.
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Meanwhile, Indian Rupee came below 70-mark, as it was trading at 69.945 down by 0.450 points or 0.62% against US benchmark dollar index.
Showing concern for Indian Rupee, Anindya Banerjee analysts at Kotak Institutional Equities said, "USDINR Nov futures may open higher around 70.95 levels as Dollar has strengthened against most major currencies globally. Global markets are eyeing the crucial US-China meeting in G20 this week. Yesterday, White House economic adviser Kudlow sounded optimistic about the Trump-Xi meeting in the G20 summit. He mentioned that there is "a good possibility" that a trade deal can be made with China. However, he added that would have to meet "certain conditions" on trade. USDCNH is gradually inching higher, now trading above 6.95."
Banerjee added, "There is a lot of overhead supply expected from the Chinese central bank between current levels and 7 handle. Therefore, it may remain in a quiet range till the G-20 gets over. However, with USD again catching a bid globally, if the ChinaUS meeting fails to yield result and US announces fresh tariffs, then risk will remain for a challenge of the official supply. A weaker Yuan, is generally is negative for the Rupee."
Moreover, the Reuters report mentioned that, the dollar struggled and U.S. Treasury yields dipped after Jerome Powell said on Wednesday that U.S. policy rates were "just below" neutral, less than two months after saying rates were probably "a long way" from that point. MSCI`s broadest index of Asia-Pacific shares outside Japan rose 0.8 percent. The Shanghai Composite Index edged up 0.2 percent, Australian stocks gained 0.5 percent and Japan`s Nikkei climbed 0.9 percent.
On global markets, analysts at IIFL said, "Asian indices opened with gains as the overnight Federal Reserve Chairman commentary on moderation in rate hikes push most indices higher. The real effect of a weaker US$ could see huge gains for emerging markets ex-Japan as investors chase higher returns. Emerging markets could also doubly benefit from a stronger currency & lower oil prices."
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