Mid-market trade: Indices rejoice global market mood; Nifty reclaims 22,500 levels

Indian equities in Thursday's trade after a positive opening tracking positive global cues traded higher as sentiment improved after the US Trump administration delayed auto tariffs by a month. As at around 2:00 pm, the BSE 30-share Sensex added 0.66 per cent or 489.33 at 74,219.56, while the Nifty50 was up reclaimed 22,500 levels, up 0.77 per cent.

Meanwhile, from the broader markets, smallcap index gained substantially- up over 1.6 per cent at the last count.

Sectorally, after an across-the-board buying sentiment in the morning, the market mood remained elevated with a buying trend continuing in the mid-hour trade too.

The buying sentiment has been largely as sentiment improved amid a host of factors including a decline in the dollar index, the US 10-year bond yield which also has a bearing on the foreign institutional investor (FII) inflow.

As it is relative to the previous two months of the ongoing calendar year, FII outflow has turned less aggressive and reduced drastically.

Further, analysts estimate that in case the global cues improve and dollar index takes a downward spiral, FIIs may slow down their outflow and may even turn buyers into the Indian markets.

Also, the lowered 10-year bond yield, may in fact turn out to be favourable for emerging markets like India.

Expert views

According to  Siddharth Bhamre - Head of Research, Asit C Mehta Investment Intermediates-the less aggressive selling by FIIs in February and now in March does'nt in any way points to a revesal in bearish market sentiment. He asserts there must be a fundamental correction in certain base metrics for reversal of FPI from being sellers to buyers, which would into pause the bearish pursuit of equity indices. These are a stable currency, better bond yields and earnings, relatively cheaper valuations, growth visibility, and stable international trade environment which attract the foreign money.