Stock market today: After opening on a weaker note, the key benchmark indices of the Indian stock market witnessed strong bottom-fishing during the early-morning session on Thursday. After hitting an intraday low of 23,193, the Nifty 50 index bounced back and touched an intraday high of 23,325. The BSE Sensex hit today’s high of 74,589 after touching an intraday low of 74,163. Likewise, the Bank Nifty index climbed to Thursday’s high of 56,570 after touching a low of 56,072 today.
According to market experts, the Indian stock market is rising for three major reasons: Dalal Street has already discounted the 25 BPS US Fed rate hike, cooling crude oil prices, and the opening of the NSE IPO.
Why is the Indian stock market rising despite the US Fed rate hike?
Speaking on the reasons that enabled a strong rebound on Dalal Street, Seema Srivastava, Senior Research Analyst at SMC Global Securities, said, “The market had already discounted the 25 BPS US Fed rate hike. So, Kevin Warsh and his 12-member voting team didn’t drop any surprise for the market, even when the US Fed rate hike came after a gap of three years.”
The SMC Securities expert maintained that 23,000 is a major support for the Nifty 50 index, and this support is expected to remain sacrosanct in the near-term as the Indian stock market is in oversold condition.
Easing crude oil prices
After nearly two weeks of boiling, crude oil prices cooled during the Thursday session. The Black Gold remained under sell-off pressure, as the Iranian Foreign Minister said in China that Iran is not in favour of continuing the war with the US.
Anuj Gupta, a SEBI-registered market expert, said, “Crude oil prices are cooling down after Iranian Foreign Minister Abbas Araghchi confirmed that Tehran considers the Islamabad Memorandum of Understanding with the United States to still be in effect during high-level diplomatic talks in China. Meeting with Chinese Foreign Minister Wang Yi in Tianjin, Araghchi reiterated that Iran is not interested in continuing military conflict with Washington and remains committed to finding a peaceful, diplomatic solution.”
NSE IPO opening, six IPO listings
Pointing towards the buzz in the Indian primary market, Arun Kejriwal, Founder of Kejriwal Research and Investment Services, said, “The secondary market is expecting a trend reversal, and this rebound can be attributed to the strong buzz in the Indian primary market. Looking at the precedent, the bear market exits the dull phase once there is strong buzz in the primary market.”
Arun Kejriwal said the NSE IPO opening, six IPOs listing on the BSE and the NSE, and a few more in the queue to list on the Indian bourses in the near term signal that mojo in the Indian primary market is back. So, secondary-market investors are expecting a trickle-down of this mojo into Indian stocks as well.
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