Selling by domestic institutions is emerging as a countervailing force putting brakes on the rally -- this explains the resistance which Nifty is facing at 19,500, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Another important trend, hugely significant from the market perspective, is the steady decline in the dollar.
Dollar index is now below 100, which is the lowest level since April 21, 2022. This declining dollar is favourable for emerging markets and India being the most-favoured emerging market, the FPI flows are likely to sustain, he added.
India VIX has dipped below 11 indicating that there is no fear in the market despite record high index levels.
Following the smaller-than-expected trend in consumer price index, the US producer price index also showed a smaller-than-expected trend yesterday with a marginal increase of only 0.1 per cent YoY. This declining trend in inflation in the mother market of the US and the resilience of the US economy are the two pillars of support for global equity markets, he added.
BSE Sensex is up 152 points in morning trade on Friday at 65,711 points led by IT heavyweights.
Tech Mahindra, Infosys, HCL Tech are each up by more than 2 per cent.
IBM partners Sarvam to strengthen India's sovereign AI ecosystem
IBM and homegrown AI startup Sarvam have partnered to accelerate the development and adoption of sovereign artificial intelligence (AI) technologies in India, with a focus on government agencies, public sector organisations and regulated enterprises, according to a statement on Friday.
Sensex climbs 274 pts, Nifty ends above 24,300 as auto stocks lend support
Indian equity benchmarks closed with modest gains on Thursday after a subdued trading session, as investors remained watchful of the evolving geopolitical situation in West Asia.
Markets extend losing streak to 5th day; Sensex sheds 332 points, Nifty slips below 23,800
Indian equity benchmarks extended their losing streak to a fifth consecutive session on Friday, marking their longest stretch of declines since the first week of January, as investors remained cautious amid concerns over the inflation and growth outlook in the backdrop of elevated crude oil prices.