Tuesday’s trade saw a slight increase in Indian benchmark indices, driven by increases in the heavyweights of the IT index.
In the early session, the Nifty IT and auto sectors saw gains of up to 1%. Financials and FMCG traded lower in the interim.
Following the RBI’s clearance to purchase up to 9.50% of shares in six banks, HDFC Bank was the centre of attention; the stock was trading flat.
In the meantime, Jio Financial Services’ stock dropped more than 7% following the company’s clarification that it is not in negotiations to purchase Paytm wallet from struggling One 97 Communications.
Expert Opinion: The short-term market trend points to exhaustion, and there aren’t any obvious catalysts that could propel the market to new, sustained highs right away. The RBI meeting on the eighth is a significant upcoming event. But the RBI meeting is unlikely to produce any encouraging signals, such as a rate cut.With the dollar index climbing to 104.5 and the yield on the 10-year bond rising once more to 4.13%, the global market structure is also difficult.
The good news is that the US economy is unexpectedly strong and that it is highly improbable that a potential US recession would cause a severe global slowdown. This can help sustain global equities markets, in addition to the US’s decreasing inflation rate. While staying involved in this bull market, investors may choose to wait and observe for new patterns to emerge.”