Stock Market: Dovish Fed Member comment, Adani tidal wave bring bulls back in ring

Spread the love

By S Jha

New Delhi, March 3: Fate of the Indian equity markets is clearly mortgaged to the global cues. After the Atlanta President of the US Federal Reserve Raphael Bostic struck a dovish tone on the rates, the equity market went surging. The 10-year treasury was seen topping out. The twin factors set up the Indian equity markets for gap up start. A series of block deals in the Adani group of companies sent bulls blasting full adrenaline to chase bears away from the Dalal Street.

Sensex and Bank Nifty scaled 100 mark each before 3 PM, while both the indices to minor profit booking in the last half an hour of trade. Nifty gained over 320 points during the day, while shedding almost 50 points in the last half an hour trade. Friday gave the biggest gains to the indices this year. The advance decline ratio at 2:1 favoured the bulls. The short covering kept pushing the indices higher.

The cooling of the bond yield and the prospects of the rate hikes not being aggressive along with Antony Blinken and Sergie Lavrov pullout for 15-minute on the sidelines of the G20 Foreign Ministerial Meeting teamed up to give the bulls fulsome reason to come charging on the Dalal Street.

The foreign institutional investors were net contributors to the market marginally. But the domestic institutional investors pumped in over Rs 2000 core in the cash markets to make a day for institutional buying in an oversold conditions in the equities. There are suggestions that the Chinese Reopening theme may also be peaking even while there is no empirical confirmation yet as some of the foreign fund houses continue to stress that they would continue to look for opportunities in the Chinese equities. Whether the stock markets are out of woods would be too premature to speculate an answer, as the investors’ time frame for the market view is now ultra-short, changing every other day.

But it was a day for the Adani Group of companies. The two FnO stocks, Adani Enterprises and Adani Ports and SEZ breached upper circuits. The midcaps and smallcaps from the Adani family also remained locked in the upper circuit. The group is certainly back in action with a bang after mobilizing the US-based fund houses to take stake in the companies. Rupee also gained strongly on Friday against Dollar.