The Sensex and the Nifty, two Indian market indices, ended a two-day losing trend to trade higher on October 5 as a result of falling oil prices and falling US bond yields.
As a result of weaker-than-expected employment market statistics, the US bond yields, which had reached multi-year highs, began to decline. This change in attitude on the worldwide market was beneficial.
The 30-share Sensex was up 0.73 percent at 12.04 p.m., reaching 65,702, and the larger Nifty 50 was up 0.65 percent at 19,563. 1,929 of the shares increased, 1,053 decreased, and 106 were flat.
“The triple whammy of spiking dollar, US bond yields, and crude is slowly easing, paving the way for a recovery in markets,” said V K Vijayakumar, chief investment strategist at Geojit Financial Services.
Although the small decrease in the dollar’s value and US bond yields is insufficient to stop FII selling, the rapid adjustment in Brent crude’s price to $86 is a significant plus, he said.
The crude correction would have favourable effects on the stocks of oil-consuming industries like paints, aircraft, and tyres in addition to the macro gains, according to Vijayakumar.
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Despite their strong fundamentals, banking stocks have fallen as a result of ongoing FII dumping, he continued.
Banks’ second quarter results are probably strong, which will lead to favourable values. As a result, investors are given a great chance to acquire.
The largest IT services provider in India, Tata Consultancy Services, said that the Georgia Department of Labour has chosen it to replace its ageing legacy platform from the 1980s with a scalable cloud-based unemployment insurance system, sending its share price up 2.4 percent to Rs 3,622 per share.
Following the company’s announcement that retail disbursements totaled Rs 13,490 crore in Q2FY24, L&T Financial Holdings saw a 3 percent increase in early trading.
The Teesta-V Power Station (510 MW) and Teesta-VI HE Project (500 MW) in Sikkim were impacted due to the flash flood in the area, according to NHPC, one of the companies that lagged behind.
Marico’s stock fell 3.2 percent as a result of reporting a little decrease in consolidated revenue on an annual basis.
The fear gauge, India VIX, decreased by 4.86 percent as the overall markets traded strongly.
At 11.30 a.m., the banking stock index Bank Nifty was over up a percent, trading close to the day’s high.
The sectoral indices rose one percent each, and IT and media stocks both increased. However, the markets for pharmaceuticals, FMCG, and PSU banking fell.
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