Market Momentum: Nifty and Sensex Rise Amidst Global Concerns

Nifty and Sensex Surge Despite Global Concerns

Written by: Supriya Kadu

Edited by: Pinky Deshmukh

Last Updated: April 26, 2024

Stock market news: Strong earnings reports from key Nifty 50 businesses, Bajaj Finance and IndusInd Bank, are expected to support benchmark indices' higher opening on Friday.

An indication of the Nifty 50's opening, GIFT Nifty futures, suggests an excellent start. The Nifty 50 is anticipated to open higher than its closing price of 22,570.35 on Thursday.

The Nifty and Sensex indices have both gained almost 2% in each session thus far this week, continuing the upward trend. This momentum is mostly attributed to declining earnings for businesses and an increase in worries about worsening Middle East tensions.

For 11 of the 12 trading sessions, domestic institutional investors (DIIS) have been net purchasers. The withdrawal of foreign investors, who have responded to rising US Treasury yields and decreasing expectations for US rate reductions in the foreseeable future, has been partially countered by this purchasing craze.

Domestic sentiment is upbeat: Prashant Tapse, senior vice president of research at Mehta Equities, credits the market's balance to generally strong earnings and the prospect of an overwhelming triumph for the ruling party in the impending elections. This upbeat outlook encourages domestic investors to enter the equity market.

Mixed Earnings Reports: Tech Mahindra, a fellow Nifty 50 member, was disappointed with a shortfall, while Bajaj Finance and IndusInd Bank surpassed analyst forecasts with their quarterly profits. This carries on the pattern of disappointing outcomes from IT firms.

Tech industry under strain: The US and European clientele's poor spending, along with declining expectations of a Federal Reserve rate decrease, are putting pressure on the IT sector. Following hotter-than-expend core PCE data, these concerns grew even greater.

Asian Markets Upbeat: Ahead of the Bank of Japan's impending monetary policy announcement, Asian markets are trading higher.

Stocks to look out for:

1) L&T Technology Service: Profits met forecasts in the March quarter, thanks to essential transaction wins.

2) UTI Asset Management: Recorded an increase in overall net profit for the March quarter.

3) InterGlobe Aviation: Ordered 30 Airbus A350 wide-body aircraft, indicating a focus on long-haul services.

Disclaimer: This piece of writing is solely intended to provide you with informative and educational content. We do not intend to provide investment, financial, legal, or tax advice. It should not be used as an alternative for expert advice or assistance.