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Factors behind the stock market rally

Jan 9, 2023

By: BlinkX Research Team

Benchmark indices snapped three days’ losses and extended it gains on Monday after US key indicators hinted at easing of Fed rate hikes and amid firm global market cues. 

The 30-pack Sensex was up 856.29 points, or 1.43%, at 60,756.66 and the broad-based Nifty was trading 244.55 points, or 1.37% higher at 18,104.

Here are the key factors behind the stock market rally:

TCS results in focus: The country’s biggest IT services company TCS will announce its Q3 results today. Company’s consolidated revenue is likely to grow 16.4% YoY, while consolidated profit after tax (PAT) is expected to increase 15.1% YoY and also be TCS’ third interim dividend announcement will be in focus.

Sectors in green: Today buying was seen across all major sectors with Nifty IT rising 2.45% and Nifty Oil & Gas surging 1.23%. Banks, financial, auto, metal, pharma, healthcare and FMCG stocks also trading higher. 

Firm global markets: Asian markets rallied on Monday as hopes for a less aggressive US rate. South Korea’s Kospi gained 2.51%, and Hong Kong’s Hang Seng index rose 1.46% on the first day of trade following the reopening. In mainland, the Shanghai Composite rose 0.6% and the Shenzhen Component rose 0.62%.

Japan’s markets were closed to observe Coming of Age Day, a public holiday. Overnight, Wall Street's main indexes all gained more than 2% on Friday.

Currency & Crude update: The Indian rupee was trading around a one-month high of 82.30 per dollar. The currency appreciated by 33 paise to 82.33 against the US dollar amid weak American currency and a firm trend in domestic equities. Besides, sustained foreign fund outflows weighed on investor sentiments and restricted the appreciation bias.

Brent crude March futures zoomed 1.09% to $79.43 a barrel and US West Texas Intermediate (WTI) and crude futures increased by 1.15% to $74.62 a barrel.