Even although the pause choice of the US Federal Reserve was on anticipated traces, the commentary was not hawkish because the market feared, says V.Okay. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Fed chief Jerome Powell’s remark that “regardless of elevated inflation, the long term inflation expectations stay properly anchored” was taken by the market as a barely dovish assertion. The implication of this assertion is that the Fed may not hike charges once more in this fee mountaineering cycle. Consequently the bond yields declined sharply. The benchmark 10-year bond yield declined 17 bp to 4.75 pe rcent and the fairness markets responded positively, he stated.
In the near-term, the greenback index at 106.3, Brent crude at round $85 and the 10-year US bond yield at 4.75 per cent are beneficial for inventory markets. There is a chance that the FIIs who were sustained sellers in October may turn buyers and if that occurs, short-covering can take markets larger regardless of the uncertainty surrounding the Israel-Hamas battle, he added.
From the valuation and development perspective, main banks present good shopping for alternatives. IT can stage a comeback, he stated.
BSE Sensex is up 444 factors at 64035 factors on Thursday. Indusind Bank is up 2 per cent, Sun Pharma, HCL Tech, SBI are up 1 per cent.
(With inputs from IANS)