VimalShree Suprabhatam,
US stocks jumped on Thursday as investors cheered the FED's decision to cut rates by 50bps. Both Dow and S&P rallied to fresh all time highs topping 42000 and 5700 for the first time in history. Dow added 1.26%, S&P gained 1.70% and technology heavy Nasdaq closed 2.51% higher crossing 18000, also small cap Russell 2000 gained 2.10%.
USD index traded lower near 100.64, 10 year remained flat near 3.71% and cboe vix fell near 16.44.
Crude futures extended their recovery from 15 month lows on optimism on better demand following US rate cuts and worries over Middle East crisis. WTI moved near 72, Brent near 75.
Indian markets traded higher to record fresh all time high closing, giving up of opening gains that took indices to fresh all time intraday highs. Banks, FMCG, Autos closed with gains in excess of 0.50% but reversal in IT, Pharma, Telecom and Metal names from their opening gains limited indices moves towards close. Sensex ended with gains of 237 points and Nifty closed 38 points higher. Mid and Small cap stocks saw heavy profit booking with some of the favourite names especially in PSU baskets seeing large cuts as 'sell on news' syndrome prevailed in markets.
Strong global equity cues, fall in USD index may help stocks to consolidate gains on Dalal Street. As indicated yesterday, participants may look at building some positions in the broader markets where stocks have seen decent pull back from recent highs, also focus on stocks that have seen fresh breakouts into multi-month / year breakouts. Traditionally the period starts in October to Christmas has rewarded investors quite well, the only difference this time will be the US elections outcome due on 4th November that may lead to some intra-period volatility.
Team,
Aapka Saarthi Axit
Allies Fin Serve
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