Indian stocks continued with their rally for the fourth straight session on Tuesday.
At 9.23 am, Sensex traded at 60,454.35 points, up 339.22 points or 0.56 per cent, whereas Nifty traded at 18,040.85 points, up 104.50 points or 0.58 per cent. Among the Nifty 50 companies, 47 advanced and the rest three declined this morning, National Stock Exchange data showed.
Prior to last Thursday, the benchmark indices – Sensex and Nifty – fell for two sessions on the likelihood of aggressive rate hikes in the US to fight inflation as indicated by the US Federal Reserve.
The indices lent support today despite a rise in retail inflation as the finance ministry attributed it to base effect and stressed that initiatives taken by the government to curb price rise will be felt more significantly in the coming months, said Mohit Nigam, Head – PMS, Hem Securities.
India’s retail inflation rose to 7 per cent in August from 6.71 per cent the previous month due to a sharp rise in food prices, as per the government data released on Monday. Retail inflation has exceeded the Reserve Bank of India’s 6 per cent tolerance band for the eighth consecutive month.
“The ongoing market rally is primarily driven by the sudden reversal of FII strategy: from relentless sellers to relentless buyers. Retail investor support and fundamental support to the market from a strong economy are aiding the rally,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Stocks in the US closed with a fourth consecutive day of gains on Monday — their longest winning streak in two months, as traders prepare for August’s inflation data due today, said Deepak Jasani, Head of Retail Research, HDFC securities. Experts expect some signs of easing prices.
Meanwhile, brokerage firm Angel One has given “buy” ratings for 10 stocks with possible returns in the range of 15-66 per cent. Those stocks are Federal Bank, Suprajit Engineering, AU Small Finance Bank, Sona BLW Precision, Amber Enterprises, Sobha, Ramkrishna Forgings, HCL Technologies, Jubilant Ingrevia, and Devyani.
(inputs from ANI)