New Delhi: The BSE Sensex advanced by over 100 points on Tuesday, marking a continuation of the bullish trend observed over the past two days.
The Sensex is currently trading at 73,809 points, reflecting a gain of 160 points, with Bharti Airtel registering an increase of more than 2 per cent.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, commented that the prevailing bullish sentiment in the market has been further strengthened by the market performance over the last two trading days, during which the Nifty surged by 486 points from Friday’s low. Despite external factors such as high bond yields in the US and geopolitical tensions in the Middle East, the underlying bullish trend remains unaffected.
He noted, “Foreign Portfolio Investor (FPI) selling, prompted by elevated US bond yields, has been offset by aggressive Domestic Institutional Investor (DII) buying, placing the FPIs at a disadvantage.”
Vijayakumar highlighted the resilience of the US market, which has remained robust despite consistent downward revisions in rate cut expectations. He observed a shift in market sentiment from anticipating six rate cuts at the beginning of the year to now expecting only two rate cuts, which the market has accommodated.
He further stated, “The primary concern in the market currently is the elevated valuations, especially in the broader market segment. Investors may opt for the safety of reasonably valued large-cap stocks.”
