Last Updated: October 10, 2023, 09:41 IST
The key frontline indices started Tuesday’s trade on a positive note, tracking strong gains in Asian peers. The S&P BSE Sensex opened 150 points higher at 65,662, and soon rallied over 300 points to 65,850 levels. The NSE Nifty50 was seen testing the 19,600 level in opening trades.
Among the Sensex pack, Bajaj Finance, Tata Steel, Titan, Wipro and Infosys was the prominent gainers.
Near home, in Asia, Nikkei surged over 2 per cent. Hang Seng was up over a per cent. Kospi and Taiwan gained more than 0.5 per cent each. Shanghai, however, was down 0.6 per cent.
Overnight, the US market, reversed losses and advanced around 0.5 per cent as two Fed officials hinted that interest rates may remain stable in the near term.
Brent Crude was seen consolidating around the $88-mark.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “The uncertainty associated with the Israel- Hamas war continues. It can take a turn for the worse if Israel starts ground operations in Gaza. The possibility of easing of tensions also cannot be ruled out since Hamas will bargain with the captured Israeli hostages. Unlike economic and market trends, geopolitical developments cannot be predicted. This uncertainty will weigh on markets.”
“On the economic front there are some positive developments. The decline in the dollar index to 105.95 and the US 10-year bond yield falling to 4.65 from the recent high of 4.88 are positive developments for equity markets. Even though FIIs continue to sell in India, the intensity of selling is coming down. More importantly. DIIs are increasing their purchases,” he said.
Calibrated buying in small quantities in quality stocks in banking, automobiles, IT, capital goods and real estate/construction would be a good strategy for long-term investors, he added.
