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The domestic market entanglement in global trade-war uncertainties seems to shaken-off as bulls foresightedness gained upper-hand amid the much-anticipated RBI’s status-quo over rate in its monetary policy and investors cheering its optimistic outlook of the Indian economy in FY19. The Central Bank projection of GDP at 7.4 percent for FY19 and lowered inflation forecast augured well for investors.
Despite the volatility, the market trading momentum was unambiguous with four gain days induced by a tinge of short- covering was well supported by stock specific news of robust Auto sales, USFDA Approvals, RBI allowing moderation in bond trading losses in banks. The market did react on Wednesday session by losing heavily on lingering US-China trade-war spat, the world’s two largest economies which continue to endorse measures and countermeasures.
The US imposed tariffs of 3249.53₹ billion on Chinese imports, China retaliated by tariffs on 106 American products, while the trade dispute is not showing signs of ending soon, as US is now exploring options to charge additional tariffs of 6499.05₹ billion on Chinese imports. The domestic market stood ground as investors focus shifted to corporate earnings growth which is due, and are in early stage of revival.
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Counterwise, the broader market, both midcap and smallcap shares outperformed the key indices posting ample gains. Buying was led by Auto, PSU Bank, HealthCare, FMCG, PSUs, Capital Goods, Oil&Gas, IT and Teck sectors.