Stock Market Today: Key benchmark indices were seen trading on a fairly volatile note on Friday
Stock Market Today: Key benchmark indices were seen trading on a fairly volatile note on Friday, with some buying seen in auto and financial shares and weakness in IT stocks.
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The S&P BSE Sensex touched a low of 66,185 in opening deals, but soon rallied to a high of 66,418 – and was up 50-odd points at 66,275. The NSE Nifty was seen testing the 19,750 level.
Among the Sensex 30 stocks, SBI rallied nearly 2 per cent. Bajaj Finserv, Bajaj Finance, IndusInd Bank and Larsen & Toubro were the other major gainers. Whereas, on the other hand, Sun Pharma, PowerGrid and Wipro declined around a per cent each.
In the broader market, the BSE MidCap and SmallCap indices were up 0.2 per cent each.
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Meanwhile, in a positive development to India’s debt market, JPMorgan will add Indian government bonds to its benchmark emerging-market index, a keenly awaited event that could drive billions of foreign inflows.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “The Fed’s hawkish pause message has created a global risk-averse sentiment in global equity markets. The spike in the dollar index to 105.52 and the US 10-year bond yield shooting up to a 16-year high of 4.5 % are negative for equity markets, particularly emerging markets. The FIIs have reversed their ‘Buy India strategy’ which they have been following in the last 3 months with selling to the tune of Rs 16934 crores in September through 21st. Countering this negative trend is the hugely positive news of JP Morgan including India in the Emerging Market Bond Index with a weightage of 10% from June 2024 onwards. This will reduce bond yields and the consequent decline in the cost of borrowing will boost the bottom line of companies.”
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“In the near-term, FIIs may press further selling in response to rising US bond yields. If this happens it will open up opportunities for investors to buy quality large-caps, particularly banking stocks which will benefit a lot from the bond inclusion,” he added.
