Stock Market Update: Market Opens With Gains, Sensex 59,111, Nifty at 17,589
Stock Market Update: Market Opens With Gains, Sensex 59,111, Nifty at 17,589
Stock Market Update, September 22, 2021: The stock market across the world are keenly watching up to the US Fed policy statement that will come today along with the economic and interest rate forecasts.

The 30-share BSE Sensex opened in the green on Wednesday at 59,111,95, up 106.68 points, or up 0.18 per cent. On the other hand, the broader Nifty was trading at 17,589.85, up 27.85 points, up 0.85 per cent. On NSE, HCL Tech, BPCL, Hindalco, IndusInd Bank, Tata Motors were the top gainer in early trade and HDFC Bank, Nestle India, Hero Moto Corp, Shree Cement, Grasim were among the laggards. About 1302 shares have advanced, 408 shares declined, and 97 shares are unchanged.

“A bullish market will witness short coverings causing sudden sharp upturns. There are reasons to believe that this happened yesterday when shorts created in anticipation of negative fallout from the Evergrande crisis were forced to cover. The sharp surge in Nifty by 235 points from lows yesterday is indicative of this. Even though the jury is still out on the final outcome of the woes of the Chinese realty major, the possibility is that the issue will be confined to China with no contagion on global markets,” V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said.

“Today the market is likely to focus on the Fed message which is likely to give a timeline for tapering. It is unlikely to be a market moving message since markets have already discounted taper,” he added.

Sectorally, all indices except Nifty Bank, Nifty Financial Services, Nifty Private Bank were trading in the red. However, Nifty Media was the top gainer amongst all sectoral indices. The Nifty Media jumped on the news of Zee Entertainment merger with Sony Pictures India. The stock market across the world are keenly watching up to the  US Fed policy statement that will come today along with the economic and interest rate forecasts. The central bank is widely expected to indicate it is getting ready to announce it will start paring back its $120 billion in monthly purchases of Treasuries and mortgage-backed securities.

“Domestic equities look to be soft as of now. Notably, yesterday’s recovery in equities and strong inflow from DIIs and FIIs show that markets have discounted possible fallout from likely default of Chinese real estate giant Evergrande, while Thursday would be crucial as US$83mn interest payment is due for Evergrande on the day. However, considering increasing possibility of earnings downgrade in the USA markets following sharp rise in Coronavirus daily caseload and continued reform measures undertaken by the government in India appear to have revived FIIs’ interest in domestic market. An inflow of over Rs65bn in the last week from FIIs vindicates this,” Binod Modi, head of research, Reliance Securities said.

“Additionally, we continue to believe that high frequency key economic indicators for Aug’21 in the form of GST collection, railway freight, auto sales volume despite semiconductor issues, power consumption, import-export data and fuel volumes indicate a sustained economic recovery on YoY comparison,” Modi added.

In the backdrop of Evergrande crisis, the US stock market ended near flat on Tuesday .The Dow Jones Industrial Average fell 50.63 points, or 0.15 per cent, to 33,919.84, the S&P500 index lost 3.54 points, or 0.08 per cent, to 4,354.19 and the Nasdaq Composite added 32.50 points, or 0.22 per cent, to 14,746.40. However, just like the wall street which was in cautious mode ahead of the meeting,  Asian markets were behaving in the same manner, the Asian stock markets made a cautious start, Japan’s Nikkei fell 0.5 per cent.

Read all the Latest News , Breaking News and Ukraine-Russia War Live Updates here.

What's your reaction?

Comments

https://shivann.com/assets/images/user-avatar-s.jpg

0 comment

Write the first comment for this!