Mumbai, 7 June (IANS). Market experts said on Saturday that the domestic market showed a strong performance amidst Tariff War and concerns of geopolitical stress after the domestic market started with consolidation.
The market was in consolidation for the third consecutive week, but managed to close with a percentage of about one percent due to favorable domestic signals.
Most of the time of the week, after being in a limited range, the benchmark indices on Friday rose rapidly and reached close to the highest level of the week.
On the last trading day of the week, the Sensex rose by 746.95 points or 0.92 per cent to close at 82,188.99 and the Nifty at 25,003.05 with 252.15 points or 1.02 per cent.
SVP-Restrice of Railor Broking Limited, Ajit Mishra said, “The main attraction of the week was the Reserve Bank’s policy announcement, which surprised the market. The central bank cut a more than 50 bps deduction in the repo rate and a reduction of 100 bps in CRR, which is a sign of a strong growth stance. In addition, there is a sign of a strong growth. Has been changed in. “
The central bank has underlined its commitment to revive domestic development amidst global uncertainties by extending its easy measures.
While such an adventurous approach was expected to be gradually revealed, this decisive action strengthens the confidence in the central bank’s intentions to support the economic reform by managing inflation risks.
This week, the sectoral performance was also positive, with strong purchases in the rate-sensitive sector. Reality, auto and banking shares led the rally, which reflects a better approach to credit growth consumer sentiments. Financial and NBFCs also benefited, as interest rate reduction is expected to improve the condition of borrowing.
Conversely, IT stocks did not perform better due to frequent global uncertainties in American and European markets.
Both midcap and smallcap index performed better than the benchmark in the broader market, reflecting the risk-on-the-on-the-onent between investors.
According to Vinod Nair, Head of Research of Geojit Investments Limited, the fourth quarter’s strong GDP, GST collection and supporting monsoon were strengthened by assistant macro indicators, investors focused on domestic oriented and interest-sensitive sectors such as financial, real estate, retail and FMCG. The edge was recorded due to strong institutional flow in these sectors.
The current global uncertainty showed profits during the week. Due to better income and evaluation, mid and small cap usually performed better than large cap.
Nair said, “China’s restrictions on rare metals exports long -term risk and investors are awaiting inflation figures in the US. The reduction in inflation and the support of a stable GDP landscape are likely to increase the trust of investors amidst global uncertainties due to the cuts in rates by RBI.”
Market participants will focus on major macroionic data for further signals.
Experts said high frequency indicators such as CPI inflation would be closely monitored to estimate the demand trend of demand and the next steps of the central bank.
-IANS
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