In a stunning reversal, the main equity indices, the NSE Nifty50 and the BSE Sensex, recovered from early losses to trade higher during Tuesday's intraday trading. From the day's low, the BSE Sensex increased by 1,226.43 points, or 1.62 percent, to peak at 79,523.13 before leveling off at 79,476.63.
Nifty50 also surged 386.30 points, or 1.62 percent, from the day's low to reach an intra-day high of 24,229.05 before closing Tuesday's trading session at 24,213.30.
Up to 39 of the 50 equities that make up the Nifty 50 ended the day higher, with JSW Steel, Tata Steel, Hindalco, Bajaj Auto, and Axis Bank leading the way.
Rebound in metal stocks and financials
Tuesday saw significant increases in metal stocks, with JSW Steel, Steel Authority of India (SAIL), and Hindalco Industries leading the way as the Nifty Metal index increased by more than 3% to 9,525.30. Axis Bank, Cholamandalam Investment & Finance, and ICICI Lombard General Insurance led the Nifty Financial Services index, which increased 2.17 percent to hit the day's high of 24,174. Financial services also saw huge increases.
Tuesday saw significant increases in metal stocks, with JSW Steel, Steel Authority of India (SAIL), and Hindalco Industries leading the way as the Nifty Metal index increased by more than 3% to 9,525.30. Axis Bank, Cholamandalam Investment & Finance, and ICICI Lombard General Insurance led the Nifty Financial Services index, which increased 2.17 percent to hit the day's high of 24,174. Financial services also saw huge increases.
The rebound in these two industries was ascribed by HDFC Securities' Head of Retail Research, Deepak Jasani, to a rebound in benchmarks during the second half of Tuesday's trading session. "Metal stocks climbed on expectations of further stimulus measures by the Chinese government after the country's parliament meeting concludes on Friday," Jasani stated.
US Fed policy ruling
Today is the last day to vote in the US presidential election. Notably, former US President Donald Trump and incumbent Vice President Kamala Harris have been engaged in a tough fight for the presidential chair. The contest is still too close in seven swing states, which are predicted to be crucial in determining the outcome: Arizona, Georgia, Michigan, Nevada, North Carolina, Pennsylvania, and Wisconsin.
Investors are generally pricing in a 25 basis point (bps) decrease in interest rates by the Federal Reserve at its policy statement on Thursday, ahead of the results of the US presidential election. CME's FedWatch Tool indicates a 98 percent chance of a cut and a 2 percent chance of rates staying the same.
The market recovery may have also been aided by optimism over Donald Trump's possible victory in the US presidential election, according to G Chokkalingam, Founder & Head of Research at Equinomics Research.
The market recovery may have also been aided by optimism over Donald Trump's possible victory in the US presidential election, according to G Chokkalingam, Founder & Head of Research at Equinomics Research.
Power in Asian markets
Today's closing gains in Asia-Pacific markets contributed to the upbeat mood in local stocks. The Nikkei in Japan was up 1.11 percent, the Shanghai Composite closed up 2.32 percent, the Hang Seng in Hong Kong was up 2.14 percent, and China's key CSI 300 jumped 2.52 percent.
China's indices rose after a private survey revealed that the country's services sector grew at its quickest rate in three months in October, while Japan's market rebounded following the 'Culture Day' vacation.
China's indices rose after a private survey revealed that the country's services sector grew at its quickest rate in three months in October, while Japan's market rebounded following the 'Culture Day' vacation.
Higher business activity and greater optimism in future output propelled the Caixin/S&P Global Services Purchasing Managers' Index to 52.0 in October from 50.3 in September. Expansion is indicated by a reading above 50, and contraction is shown by a figure below 50.
Technical indicators
The Nifty Index recovered well from today's low and regained the 24,000 mark. Interestingly, the index maintained its low of 23,816 from yesterday, with a low of 23,842 today. As the index recovered from the day's low, the daily RSI displayed a bullish divergence, according to Jigar S. Patel, Senior Manager-Technical Research Analyst at Anand Rathi Shares & Stock Brokers.
Technical indicators
The Nifty Index recovered well from today's low and regained the 24,000 mark. Interestingly, the index maintained its low of 23,816 from yesterday, with a low of 23,842 today. As the index recovered from the day's low, the daily RSI displayed a bullish divergence, according to Jigar S. Patel, Senior Manager-Technical Research Analyst at Anand Rathi Shares & Stock Brokers.
The likely result of today's US elections was the spark for the short-covering surge that the markets were searching for, according to Gaurav Bhandari, CEO of Monarch Networth Capital. With a long-to-short ratio of under 20%, FIIs were holding sizable short bets on the index. Bhandari clarified, "Whenever this ratio drops to 20 per cent or below, a massive short-covering rally typically follows." He thinks this rise is just getting started and expects more stock short-covering in the days ahead.
0 Comments