US Federal Reserve cut interest rate by 25 bps, markets remain positive
In
the early morning trade, the GIFT Nifty was trending marginally higher at
25,488, indicating a flattish open for the benchmark Nifty 50. Asian equity
benchmarks opened with sharp gains on the back of US Fed's 25 basis point rate
cut. US index futures traded positive as well, with gains of up 0.4% while Euro
Stoxx 50 futures were flat.
The
benchmark equity indices closed in the green for the second straight session on
Wednesday. The NSE Nifty 50 ended 91.15 points or 0.36% higher at 25,330.25 and
the BSE Sensex closed 313.02 points or 0.38% up at 82,693.71. The Nifty rose
over 0.43% during the day to 15,346.50, while the Sensex climbed 0.44% to
82,741.95.
The
foreign portfolio investors on Wednesday turned net sellers of Indian shares
despite a rise in markets ahead of the US Federal Reserve's rate cut decision.
The FPIs sold stocks worth approximately Rs 989.81 crore, according to
provisional data from the National Stock Exchange. The DIIs stayed net buyers
for the eighth session and bought stakes worth Rs 2,205.12 crore.
Fundamental Update
- Cochin Shipyard - The company signed an agreement
with ONGC for dry dock/ major lay-up repairs of jack up rig. The estimated
contract value is around Rs 200 crore. Positive
- TVS Motor - The company launched TVS King
Deluxe Plus CNG 3-Wheeler in Tanzania. Positive
- Railtel Corp - The company received Rs 106 crore
order for the procurement, supply and installation of smart classrooms from
Bihar Education Body. Positive
- JK Tyre - The company revised GST Demand of
Rs 8.18 crore. Negative
Technical Update
- NIFTY – Nifty continued upward march with another 90 points gain to settle at 25,330 on Wednesday. Index has resistance at 25,400 and then 25,500. Support lies at 25,250. Today’s range 25,250 – 25,500.
- BANKNIFTY – Bank nifty zoomed past 55K to close
at 55,493 on Wednesday. Index has 56K as next target as sentiments remain
bullish over PSU banking stocks. Today’s range – 55,250 – 56,000.
Disclaimer: This report is prepared by an analyst who has exercised due diligence in
checking the correctness and authenticity of the information before publishing
research report. We shall not be in any way responsible for any loss or damage
in analysis or views obtained from the use of information contained in this
report and especially states that we have no financial liability whatsoever to
the user of this report.
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