Last updated: May 22, 2023, 9:26 AM IST
Benchmark BSE Sensex bounced back from early lows to close at a five-month high on Friday, May 12.
Major benchmark indices opened flat Monday morning amid mixed global signals.
Major benchmark indices opened flat Monday morning amid mixed global signals. S&P BSE Sensex was trading at 61,636 levels, down more than 50 points, while Nifty50 remained flat below the 18,200 levels.
Broader markets were also dovish in trading, with Nifty Midcap 100 and Nifty Smallcap 100 indices falling as much as 0.2 percent.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “Near-term uncertainty in global stock markets is likely to persist as the issue of the US debt ceiling is yet to be resolved. A strong rally will only take place after this deadlock has been cleared.”
“The undercurrent of the market is bullish. Bank Nifty is likely to gain traction as the withdrawal of Rs 2000 notes is positive for banks. It will add to banks’ deposits and increase their CASA, increasing their bottom line,” he added.
He went on to say: “An important message for investors is that interest rates have peaked both globally and in India, and this is positive for equity markets in the second half of CY 2023. Interest rate sensitive sectors such as financials, real estate/construction and autos will benefit from a likely interest rate cut by the end of 2023. From a valuation standpoint, IT stocks are now bargain buys.”
Global signals
Globally, US markets fell on Friday as investors worried about debt defaults. Dow Jones, the S&P 500 and NASDAQ Composite indices fell 0.3 percent.
However, recent reports indicate that President Joe Biden and Republican House Speaker Kevin McCarthy had a positive talk on Sunday. Both leaders meet today, 10 days before the deadline (June 1).
Markets in Asia and the Pacific also showed weakness this morning, with Nikkei 225, Topix, the S&P 200 indices falling as much as 0.1 percent.
