Markets Remain High Globally

The Sensex and Nifty have been ceaselessly rising since the beginning of today’s trading. The Sensex rose as much as 304 points in the day. Currently, the Sensex is trading at 16920.68, higher by 286 points, rising 1.69 per cent and the Nifty is trading at 5132.1, higher by 89.1 points, rising by 1.77 per cent.

The Asian markets closed positive today with the Shanghai Composite moderately higher by 0.14 per cent. The Hang Seng and Nikkei saw quite a spike with a rise of 2.32 per cent and 1.46 per cent respectively. All these movements have been attributed to the comments by Mario Draghi.

The European indices, FTSE, DAX and CAC opened higher by 0.4 per cent each. The French Consumer Confidence Index figures have been announced and they’re lower than forecasts, actual standing at 87 versus the estimated figure of 90. German CPI figures are also to be released later today. All eyes though are now on the U.S. GDP figures which will be announced at 7 pm IST. The direction of U.S. markets would be ruled by these figures. The current estimate for the quarterly U.S. GDP figures is 1.5 per cent which is lower than the figure for the previous quarter which was 1.9 per cent.

On the domestic front, sectors that saw major declines over the week are now trading with the highest appreciation. Traders have been looking at the downfall as buying opportunities driving Metals to a rise of 2.76 per cent, Power to rise by 1.82 per cent and Consumer Durables growing by 1.8 per cent. All of the sectoral indices are currently seeing a positive change from opening.

ICICI Bank, as expected by traders, has beaten analyst estimates. The net profit of the company rose by 36 per cent YoY to Rs.1,815 crore. The net interest income to increased by 32.44 per cent to Rs.3,193 crore. Gross NPAs declined on a sequential basis adding to the robustness of the result announcement. So far today, the stock price of ICICI Bank has risen by 3 per cent and is expected to gain further upward momentum. Tata Motors, Sterlite Industries and Tata Steel still remain the top gainers on the Sensex yielding higher than 4 per cent returns today.

We expect this upswing to last through the day and the markets will continue to trade at these levels in the second half of trading.