The market is abuzz today on July 29, with benchmark indices extending gains, with Nifty rising up to 0.94% to 24,211 and Sensex is 1.01% higher to 77,541, as of 10 am.
This surge comes against the backdrop of several positive cues, including global cues, and sectoral rallies.
Most sectors are in the green, with gains led by IT which is up over 2.4%, followed by Metal and FMCG. Realty is down 0.46%.
The broader indices are trading positively too, with Nifty Smallcap 250 up by 0.81%, while the Midcap 150 rose 0.66%.
Here are three reasons why market is rising today:
US Fed Watch
Investors are feeling optimistic and tracking upcoming commentary and policy announcements from the Federal Reserve. The Federal Reserve may not have changed interest rates yet, but the bond market is already preparing for a scenario many investors considered unlikely just weeks ago.
With the Fed set to announce its latest monetary policy decision this week, institutional investors are paying a sharply higher price to insure themselves against the possibility of a major upside shock in US interest rates.
Activity in the interest-rate derivatives market suggests traders are no longer treating aggressive policy tightening as a remote possibility, even as opinions remain deeply divided over what the central bank will do.
Nifty IT Rally
Shares of leading Indian IT majors such as Tata Consultancy Services Ltd., Infosys, and Coforge gained nearly 2-3% in early trade on Wednesday, July 29, for the second straight session over improving earnings sentiment amid a reverse AI trade in global markets.
Renewed brokerage optimism has also sparked broad-based buying across the sector. The Nifty IT index was up 3% intraday, with Coforge leading the rally with gains over 4%, following by Infosys and Larsen & Toubro (L&T).
Mixed Asian Markets
Asian markets traded mixed on Wednesday, with gains in Hong Kong's Hang Seng (+1.37%), Australia's ASX 200 (+0.93%), New Zealand's NZX 50 (+0.72%), Singapore's STI (+0.57%) and Malaysia's FTSE Bursa Malaysia KLCI (+0.12%) offset by losses elsewhere.
Japan's Nikkei 225 fell 2.77%, while South Korea's Kospi slumped 9.76%. Chinese equities were also lower, with the Shanghai Composite declining 0.53% and the Shenzhen Component shedding 0.43%.
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