Stock Market: Bulls high on global cues may keep eyes on poll outcomes

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The rally in the US equity market is being led by the optimism that the Federal Reserve is now done with the rate hike waves and the Central bank may have to now responding on demands for rate cuts.

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By S Jha

New Delhi, December 1: Nifty should be flying on Friday on the back of the record close of Dow Jones last evening in the US and also for the fact the GDP growth number beat the street estimate. But the investors may keep their eyes fixed on screens to check for the poll outcome trends. The outcome of the Assembly polls will be out on Sunday, and the investors may stay cautious on Friday.

Dow Jones gave a close with gains of over 500 points on Thursday evening. The leading Aemrican index posted a gain of eight per cent in November. The rally in the US equity market is being led by the optimism that the Federal Reserve is now done with the rate hike waves and the Central bank may have to now responding on demands for rate cuts. Besides, the US economy is posting healthy growth numbers.

Nifty also posted a gain of six per cent in November. The index went on option expiry frying pan on Thursday to keep swinging in sideways mode. The market participants are keeping tabs on the sideways appetite of the index ahead of the Assembly poll verdict.

With global cues favourable, the stock specific action may gain the spotlight on the bourses. The auto stocks trending. The perennial laggard Hero Motocorp is showing furious run on the bourses. The two-wheeler giant has quickly moved above Rs 3800 level amid favourable commentaries due to the new launches of trendy bikes. Bajaj Auto has also been galloping on the bourses. This scrip has also moved with ease to the Rs 6100 level, and the market participants see momentum in the stock. Eicher Motors also showed signs of picking up momentum in Thursday action. This scrip has lagged behind both Hero Moto Corp and Bajaj Auto.

The bullish sentiments on the street could also be seen in the IPO mania. Tata Technologies listed with gains of almost 175 per cent, making it more valuable in market cap than Tata Elxi. Earlier, IREDA had given over 100 per cent of gains on the first day of listing. Now, the investors are searching for the next batch of IPOs.

The PSU stocks are buzzing. Besides the rail stocks, the likes of BHEL, HAL, PFC and others are making steady gains on the bourses. With COP28 beginning in Dubai, the spotlight for the few days could be on efforts for climate mitigation. The power stocks with exposure to renewable energy are being sought after by the investors.