- Sensex and Nifty start positively, fueled by gains in heavyweight stocks.
- Investors await US inflation report and Q4 earnings season.
- Analysts forecast further upside potential but caution against aggressive positions.
- Broader indices outperform benchmarks; Nifty Metal and Oil & Gas sectors surge.
- Vedanta leads Nifty Metal gains post-upgrade by CLSA.
- Global markets await US inflation report; mixed performance observed.
- Asian markets respond variably; Japan’s Nikkei slips while Hang Seng climbs.
A rally in heavyweight companies drives the Sensex and Nifty higher, as investors await crucial data releases and Q4 earnings reports.
Positive Start amid Record Highs :
On April 10th, both the Sensex and the Nifty began trading strongly, riding the wave of gains from large-cap stocks. This increase comes after a record high for the equity benchmarks, albeit without sustained momentum.
Market Performance :
The Sensex rose 186.18 points, or 0.25 percent, to reach 74,869.88, while the Nifty rose 57.70 points, or 0.25 percent, to 22,700.5. Gainers dominated the market breadth, with around 1,484 shares rising, 705 declining, and 102 unchanged.
Expected Reports and Analyst Perspectives :
Market observers predict a consolidation phase, with attention turning to the anticipated US inflation report and the forthcoming Q4 corporate earnings season. Vaishali Parekh, Senior Vice President of Technical Research at Prabhudas Lilladher, is optimistic, predicting further gain potential with near-term Nifty objectives of 22,800 and 23,200. Conversely, Sameet Chavan, Head Research, Technical, and Derivative at Angel One, cautions against aggressive long positions due to the possibility of a time-based drop at these elevated market levels.
Further Market Trends :
During the first trading hour, broader indices such as the Nifty Midcap 100 and Nifty Smallcap 100 outpaced the benchmark indices, gaining up to 0.5 percent. Furthermore, the India VIX fear measure fell by 0.8%, lingering near 11. The Nifty Metal and Nifty Oil & Gas sectors performed well, with each rising by more than 1%.
Vedanta’s Growth and Sectoral Shifts :
Notably, Vedanta led the increases in the Nifty Metal index following CLSA’s ‘buy’ rating upgrade and an upward adjustment to the target price. On the other hand, profit booking continued, putting downward pressure on pharmaceutical and technology equities.
Global Market Dynamics :
In the global arena, US markets closed mixed as investors awaited the US inflation report, which is critical for the Federal Reserve’s monetary policy choices. While the Dow Jones fell slightly, the NASDAQ Composite and S&P 500 indices rose by up to 0.3%.
Focus on the US Inflation Report :
Anticipation surrounds the US inflation data, with forecasts of a jump to 3.4 percent in March, up from 3.2 percent in February, in line with the Federal Reserve’s 2 percent inflation target.
Asian Market Response :
In Asia-Pacific markets, sentiment was mixed, with Japan’s Nikkei 225 index falling slightly, while Hong Kong’s Hang Seng index rose by one percent. In March, Japan’s corporate inflation rose for the third consecutive month, and Australia’s S&P 200 index rose little as well.
By attentively watching these events, investors can make informed decisions about the present market scenario.