Sensex tops 60k as global rally continues

MUMBAI: Global tailwinds helped the sensex close above 60,000 once again after two weeks but some market analysts said the two-day old rally could fizzle out after the Tuesday break due to the trading holiday on Holi.
Market players feel that despite strong economic data in the US amid raging inflation, the Fed may not raise rates as aggressively as was being expected earlier. This has led to a global rally, including in India. The strong gains in Adani Group stocks also boosted sentiment, market players said.
The sensex began on a strong note to cross 60,000 and reached an intra-day high of 60,500. However, some profit taking during closing hours pulled it down and it closed Monday’s session at 60,224, up 415 points.

Buying by FIIs has improved sentiment, says analyst
The NSE Nifty gained 117 points to close at 17,711 on Monday.
According to Vinod Nairhead of research, Geojit Financial Services, one of the major concerns that prevailed in the market in the last few weeks was the fear of aggressive US Fed policy action, which led to a rise in treasury yields and US dollar. Additionally, there were uncertainties surrounding Adani Group stocks. “All of these have now shifted in favour of the bulls, as US officials reduced the likelihood of a sharp rate hike, forcing yields and the dollar index to moderate. Additionally, improved market sentiment due to the foreign bulk deal at Adani, the oversold stage of the domestic market, and FII buying (have) helped sharpen the recovery,” Nair wrote in a note.
Among sensex stocks, Infosys, RIL and HDFC contributed the most to the day’s rally while profit taking in L&T, Tata Steel and ICICI Bank limited the gains partially. Of the 30 sensex constituents, 24 closed higher while six closed in the red. Chartists said the Nifty’s inability to close above the 17,800-mark was a sign of weakness for the market.