INSUBCONTINENT EXCLUSIVE:
NEW DELHI: If you think the stock market is getting its winning touch back, you probably are not wide of the mark.
The BSE benchmark Sensex
surged 350 points and the Nifty50 set its sights on the 10,800-mark
on Thursday, headed for gains for the second straight session
Why is there a frenzy of buying interest on Street
Global markets: The rise in domestic market had much to do with the surge in stocks
Asian shares were ruling at two and a half month high
on Thursday, tracking a higher overnight close on Wall Street.
Hong Kong's Hang
Seng's was up 0.7 per cent, followed by Kospi and TWSE
There was optimism all around over the improving health of global economies as ECB chief economist Peter Praet
on Wednesday said the
regional central bank is confident of inflation hitting its target
Meanwhile, all eyes were on G-7's Quebec meet scheduled for
Friday and
Saturday
It will be the first chance for G-7 leaders to meet Trump in person since US tariffs on steel and aluminium imports from Canada, Mexico and
the European Union were imposed last week, Reuters reported
Banking rally: Banking and financial stocks contributed most to the Sensex rise
The RBI
on Wednesday announced a slew of changes pertaining to banks and NBFCs such as changes in the method for valuation of state
government securities, revision in housing loan limits for PSL eligibility, aligning objectives with PMAY and increase in Liquidity Coverage
Ratio (LCR) carve out from Statutory Liquidity Ratio (SLR).
These additional measures will optically cushion earnings of banks -- especially
PSBs, albeit bank-wise the impact is difficult to ascertain -- Edelweiss Securities said in a note
Technical trigger: Thanks to morning gains, the Nifty is retesting its previous supply zone of 10,750-10,780 levels which, if breached,
could accelerate the upside
The ongoing buying momentum has been triggered as the index is believed to form a minor double bottom around its 50- and 100-day SMAs
Valuations: Analysts noted that valuations for Indian equities have moderated from the recent highs
The Sensex now trades at a 12-month forward P/E of 18.6 times, still at a 7 per cent premium to its long-period average of 17.4 times
On the other hand, the Sensex price to book value at 2.7 times is marginally above its historical average P/B of 2.6 times
Brokerages, including Motilal Securities, though see limited triggers for further re-rating unless accompanied by a pick-up in
earnings.
RBI's growth card and a neutral stance: According to analysts, chances of a status quo were greater than a rate hike and it was
The neutral stance is not contradictory to the rate hike, but such a stance leaves all options open on the table for the MPC, Patel said in
The economy is projected to expand in the range of 7.5-7.6 per cent in April-September and 7.3-7.4 per cent in October-March, with risks
