Reliance, L&T Lead Sensex Surge
According to V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, global market participants will be closely watching US Federal Reserve chief Jerome Powell's comments concerning the US disinflation process and the probable direction in interest rates.
A 25 basis point rate hike, already priced in by the market, will not cause a market reaction.
However, if the Fed chairman says that inflation is under control and that no further rate hikes are required, the markets would surge. But, he adds, such a scenario is exceedingly unlikely because the Fed will play it safe even if inflation is under control.
While the Indian market is anticipated to remain range-bound today, individual stock movements in response to results and news will occur upmove.
Tata Motors' Q1 earnings and decision to cancel DVR shares, as well as L&T's good profits and share buyback news, are all sentiently bullish, he noted.
The BSE Sensex is up 430 points in morning trade on Wednesday, reaching 66,786. L&T is up more than 3%, and Reliance Industries is up over 2.5%, leading the market upmove.
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