The market lost half of the day’s increase in the afternoon but still ended 1.5 percent higher, expanding the uptrend for the third consecutive session on March 10. The key index rose almost 3 percent intraday.
BSE Sensex rose 817 points to 55,464 and Nifty 50 soared 250 points to 16,594 at the near future. This happened after a 3 percent increase in the previous two sessions, which followed a 5.5 percent decline for four consecutive days.
The wider market also joined the Bulls Party, with the MIDCAP 100 NIFTY index up 0.9 percent and a small 100 index climbing 1.4 percent.
All sectors, except, are traded in a positive field. The Nifty Bank, Auto, FMCG and Metal indices are the main enhancer, advancing each 2-3 percent.
Here are five factors that raise sentiment:
1) Optimistic global mood
Asian shares gained momentum after the rally on Wall Street last night, driven by a significant decline in oil prices. Japanese Nikkei leads the Asian package, up 4 percent, and South Korea’s Kospi rose 2.2 percent. Shanghai Composite China, Hong Kong Hang Seng and Asx 200 each rose more than 1 percent.
The US market experienced a strong road on March 9, with the S & P 500 reported the best day rally since June 2020 as the price of commodities was cooled. The Dow Jones Industrial Average rose 2 percent, the S & P 500 jumped 2.6 percent and the Nasdaq composite rose 3.6 percent. Even the European market had Stellar Run in the previous session, with the Stoxx 600 Pan-European index rose 4.7 percent on March 9.
2) Cooling commodity prices
Commodity prices, especially metal and metal industries, began to cool after reaching multi-year and record highs, supporting market sentiment. With this, inflation worries may subside a little, at least for now. If commodity prices fall further and the Russian-Ukrainian situation increases with talks, equity can rally again. Investors need to monitor the situation carefully, experts say.
Brent crude futures traded at $ 115 per barrel, up almost 4 percent, but 17 percent lower than high in the middle-here hoping that OPEC countries can fill the gap created after US sanctions in Russia.
Industrial metals including copper, aluminum and Zinc LME futures were corrected 2-5 percent while Timah LME futures fell 9 percent in the previous session.
“Investors still need to be vigilant because the uncertainty of geopolitical deadlock still looks great,” said Aishvarya Dadheech, fund manager at Ambit Asset Management. “The price of commodities is most likely to see a secular decline even after the war subsides because sanctions will continue to disrupt the global supply chain. Unless sanctions withdrawn, the global market can remain fluctuating in the coming months and India will not remain isolated.”
3) Ukrainian-Russian talks
After three rounds of conversation failed, Russian Foreign Minister and Ukraine would hold a fourth round in South Turkey on March 10, the first high-level face-to-face meeting after Russia invaded Ukraine. The war is in the third week now.
Globally, the market hopes about some positive developments in this round talk.
The main statement of Ukraine Volodymyr Zelenskyy said the country no longer suppressed NATO membership, also supported market sentiment. This is one of the important reasons behind the Russian invasion to Ukraine.
4) the results of the state selection
BJP’s strong performance in four of the five state selections encouraged market sentiment. BJP LED in Uttar Pradesh, Goa, Manipur and Uttarakhand, while the AAM AAM Party has a majority in Punjab.
“The results of the state selection risk political instability in India for at least two years,” Dadheech said.
5) India Vix
The Indian volatility index eased 6.86 percent to 25.58 from the previous closure, helping the market. It was at 36 two weeks ago. The index must go down to around 20 before the market becomes more stable.
