“US equities extended gains mostly with S&P 500 and Nasdaq recording fresh highs. Notably, strong momentum in technology and consumer discretionary stocks aided market. 10-Year USA treasury yield softened further by 3bps to 1.28%, which aided rate sensitive sectors like technology. In term of key economic data, pending home sales data for July was published, which fell 1.8% MoM as against consensus estimate of 0.5 per cent growth. In our view, August month nonfarm payroll data would be the most crucial data point in coming days as Mr. Powell stressed about sustainability of job recovery before finalizing timeframe for scaling back monthly asset purchase programme. Consensus estimate is 7.5 lakh jobs addition in Aug’21 with unemployment rate at 5.2 per cent. Additionally, consumer confidence data, manufacturing and services PMI will also be in focus,” Binod Modi, head strategy at Reliance Securities said.
At 1252 hours IST, the BSE Sensex was up 306.57 points, or 0.54 per cent to 57,196.33. Nath Bio Genes, 3 M India are top gainers on BSE and on the other hand, IFCI, Sundaram Fasteners, Sudarshan Chemical were among the laggards.
The 30-share BSE benchmark Sensex has surged over 4,000 points so far this month to scale the 57,000 mark for the first time on Tuesday as the bull run continues in the equity market. The sharp rally in both BSE and NSE reflects the strong sentiment in the market despite the ongoing global and domestic worries.
Indian and other markets, last week, were acting cautiously as they were seeking clarity about the US tapering of $120 billion asset purchase every month. The markets were looking upto Jeremy Powell’s speech at most awaited Jackson Hole Symposium.
Powell speaking on last Friday did not give any definite timeline for the tapering but said this will happen this year only. So the clarity about the tapering and Powell’s dovish stance boosted the spirit of the markets today.
Riding on the back of Powell’s speech, at 1324 hours, the Japanese shares also hit a 3-week-high. The Nikkei share average climbed 1.08 per cent to 28,089.54, closing above the 28,000 level for the first time since Aug. 12. The broader Topix gained 0.54 per cent to 1,960.70. In early trade, the BSE Sensex and Nifty50 both opened in green, the BSE Sensex was up 194.75 points, or 0.34 per cent at 57,000 while the Nifty50 was up 28.59 points, or 0.17 per cent at 16,959.
Now, the GDP number scheduled to come today will set the course of the Indian market from tomorrow onwards. As the GDP growth of the country in the first quarter of FY22 is expected to be in double digit.
Read all the Latest News, Breaking News and Coronavirus News here
