Auto stocks lead Sensex gains

  • IANS
  • Stock Market News
Auto stocks lead Sensex gains
Credit: © Reuters.

New Delhi, April 8 (IANS) BSE Sensex is trading at 74,604 points, up 356 points. Auto stocks are leading the Sensex gains.M&M (NS: MAHM ) is up more than 3 per cent, Maruti (NS: MRTI ) is up more than 2 per cent.

For IT companies, Q4 results will be tepid and, therefore, the market response will depend on the management commentary, says V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

Results of financials will be good and this can push Bank Nifty higher led by banking majors like HDFC Bank (NS: HDBK ), and ICICI Bank (NS: ICBK ), he said.

The small finance banking segment is a category doing well. Capital goods and autos are on a strong wicket. FMCG is weak weighed by poor volume growth, he said.

This year began with market expectations of seven rate cuts by the Fed in 2024. Then it came down to three and now many believe that the Fed may cut only twice this year. The strength of the US economy and labour market has surprised the majority of experts and market participants, he added.

Despite the scaling down of rate cut expectations, the US market continues to be buoyant, setting new records. This will provide the global support for equity markets like India, he added.

Deepak Jasani, Head of Retail Research, HDFC Securities, said investors pared their holdings in global equity funds in the week ending April 3 as they weighed the possibility of the Federal Reserve delivering fewer interest rate cuts than expected, amid strong US economic reports and solid labour demand.

Asian stocks followed gains on Wall Street after better-than-expected US payrolls data on Friday. The focus will soon shift to US March inflation data due mid-week, he said.

--IANS

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