Global tailwinds helped Indian sensex to close above the psychologically important 60,000-mark once again after two weeks but some market analysts said the two-day old rally could fizzle out after the Tuesday break due to the trading holiday on Holi.
Market players feel that despite strong economic data in the US amid raging inflation, its central bank may not raise rates as aggressively as was being expected earlier. This has led to a global rally, including in India. The strong gains in Adani Group stocks also boosted sentiment, market players said.
The sensex started the new week on a strong note to cross 60,000 points and reached an intra-day high of 60,500. However, some profit taking during closing hours pulled the sensex down and it closed Monday’s session at 60,224, up 415 points. On the NSE, the Nifty gained 117 points to close at 17,711.
According to Vinod Nair, head of research, Geojit Financial Services, one of the major concerns that prevailed in the market in the last few weeks was the fear of aggressive US Fed policy action, which led to a rise in treasury yields and US dollar. Additionally, there were uncertainties surrounding Adani Group stocks. “All of these have now shifted in favour of the bulls,” Nair wrote.