FIRST TRADE: Balance measures take 5 days of loss; Nifty up 0.4% at 25,118, Sensex gains 400 points
Indian shares are among the global markets that are improving after the record close in the US markets in the past which opened higher. Earlier, the Nifty gained 103.3 points or 0.41% to 25,117.9, while the Sensex rose 0.49 percent or 398.9 points to 82,087.35 points.
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, “Globally equity markets have remained strong despite tensions in the Middle East. The best for equity markets is a strong US economy with September’s non-farm payrolls numbers being reasonably priced. Coming in surprisingly strong from 2.54 lakhs.”
The combination of a strong economy and low inflation in the US capital market is a big positive, he added.
The sharp correction of the previous session was mainly due to strong FII selling and mainly large caps like RIL, HDFC bank and ICICI bank which are major contributors to the AUM of FIIs have borne the brunt of the FII onslaught. This correction is an opportunity for long-term investors as the valuations of these stocks are good and prospects look good.
Meanwhile, Asian markets showed resilience led by Japan’s Nikkei up 2 percent, followed by the Hang Seng’s gain of more than 1 percent. Meanwhile, MSCI Asia ex Japan traded 0.37 percent higher.
Zee Business Managing Editor said that currently 2 key factors will determine the trajectory of Indian equities, firstly the performance of US markets and secondly retail investors buying sentiment.
