The markets have started the Monday on a steady note with both Sensex and Nifty clocking in steady gains and broader markets also seeing brisk buying in early trade. The gains today are of course led by Reliance Industries after delivering strong Q4 numbers. It hit a key milestone. It has now become the first Indian company to exceed the Rs 10 lakh crore networth mark. The broader market is also seeing brisk buying .
The Ather Energy IPO that’s launched today also added to the positive sentiment in the market. This is the first mega mainboard IPO in the markets after a gap of almost 2 months. The market correction in the recent times also led to a significant moderation in the overall IPO sentiment.
Four reasons why the markets are rising today
There are many factors that is helping the markets clock steady gains. Some important factors include-
Optimism about India-US trade talks
Source based reports from from US and India indicate that India might be the first country to have a trade deal with the US to avoid reciprocal tariffs. The latest reports and source based information on Financial Express.com highlighted that the proposed bilateral trade agreement (BTA) between India-US is likely to focus on ways to enable Indian companies to upgrade and operate in key technologically advanced sectors like telecommunications equipment, biotechnology, artificial intelligence, pharmaceuticals, quantum computing and semiconductors.
Global markets steady
Its a stable session across Asian markets on hopes of further stimulus from China. Markets like Nikkei, Hang Send are all steady on the back of encouraging cues from US and hopes of additional stimulus. The US Futures have however displayed a rather muted sentiment as the trading progressed. All eyes are on data coming out from US.
Pharma stocks strong
The relative siolence on any further tariff announcement auguts well for the pharma stocks. Both the Nifty Pharma Index and NSE Healthcare Index are up nearly 2% led by Index heavyweights like Dr Reddy’s, Cipla, Sun Pharma and the like. Historically also, the Nifty Pharma Index has delivered positive returns in 11 out of 16 years in April. The key pharma earnings expected next month.
FII buying continues for eighth straight session
FIIs have been net buyers for the 8th consecutive session and so far they have net bought equities worth over Rs 32,000 crore in April. The market is taking this as a key sentiment indicator and this has also boosted pverall investor sentiment and added momentum to overall buying.
Market watching out for MSCO rebalancing
Apart from the ongoing earnings season, the market will be watching out for the MSCI India Standard Index rebalancing announcement. The announcement is scheduled on May 13 after market closing and the changes are going to be effective from June 3. JMFinancial expects inclusion of Nykaa. They also see low probability of Coromandel International, Adani Energy Solutions of making the cut too. Thermax is a stock that they expect to be excluded. However, these are all expectations and one has to look at the final announcement.