Bulls Are Back

Bulling came back on the Dalal Street as the benchmark indices witnessed a strong up-move. With US Fed putting end to speculation about the expected hike in interest rates. There was fear in the market about Fed announcing that interest rates would be data dependent. With this clarity the global indices witnessed a northward movement and Indian equity markets were not an exception. The S&P BSE Sensex ended with a gain of 480 points or 1.7%, the sharpest single-day gain measured in points, after NDA’s election victory in the general elections in May 2014. The Nifty also managed to close above the 8100 mark to close at 8114 (Up 139 points (1.75%).

Apart from that the positive move was seen in sectors like Automobile and real estate. While the automobile sector is bracing up for some major revival, the expected introduction of Real Estate (Regulation & Development) bill is likely to be introduced in the month of December 2014.

Going ahead we are of the opinion that, with the kind of investment China and Japan have committed there are lot of expectations from the US visit of Indian Prime Minister. We are of the opinion that it would bring huge and most importantly sustainable funds flow to Indian markets. This fact is likely to keep the market buoyant.

While this is the scenario on the domestic front, Global markets are also providing positive triggers. In the US markets, more encouraging economic news and friendly signals from the Federal Reserve cheered investors, as the stock market climbed to another record high. The gains came a day after the Fed made clear that it's in no hurry to raise a key bank lending rate, easing a major concern for the stock market. Eight of 10 industry groups in the Standard & Poor's 500 index rose, led by financial stocks. Two of three major U.S. indexes finished at all-time highs. The S&P 500 index gained 9.79 points, or 0.5 %, to 2011.36, while the Dow surged 109.14 points, or 0.6 %, to close at 17,265.99. It was the second straight day the blue-chip index has closed at a record.

After long time it is been seen that the all major Asian equity indices are trading in green. The Nikkei is the biggest gainer as the index has surged more than 1.40 %. Even Shanghai Composite is trading in green with marginal gains. Hang Seng is up by 0.20%. SGX Nifty is trading with marginal gains of 0.06%.

Today we expect the Indian equities to continue with its up-move. Kind of increased volume markets have experienced in F&O segment yesterday, clearly indicates towards the fact that traders are back in the markets. The sectors like Realty and Automobile are likely to drive the surge in indices. Last but not the least,  mid cap and small cap indices are likely to outperform.