The domestic market made a positive opening on Thursday as traders returned to the Street after a day’s off on Wednesday, tracking positive cues from global markets, especially as Asian equities traded in the green during the pre-opening session.
An easing US dollar pushed treasury yields lower on rising hopes that the US Fed would go easy on the magnitude of rate hike at its upcoming policy meeting, especially after the Bank of Canada’s lower-than-expected interest rate hike even though concerns of slowing economic growth remained.
At the time of writing, the equity benchmark indices Nifty50 traded 0.41% higher and Sensex rose 216.6 points or 0.36%, with gains across metal and realty sectors supporting the Street.
NiftyNine outperformed all sectoral indices listed under the Nifty umbrella, jumping 2.3%, followed by Nifty Reailty up 1.21%. Nifty50 advanced 0.52%.
Markets expect the Fed to moderate rate hikes starting December and consequently, the Dollar Index has tripped below 110 and the 10-year US bond yield has eased to 4.03%.
This could nudge FPIs to turn buyers imparting strength to the market. Nifty’s recent range of 17500-17800 looks set to be decisively broken on the upper-end today, stated Dr V K Vijaya kumar of Geo jit Financial Services.