Sensex, Nifty open at all-time highs tracking positive global cues

On Wednesday, the US stocks initially fell after the ADP National Employment report said private payrolls increased by 184,000 jobs in March, indicating a strong economy. The report also showed the median wage for workers switching jobs jumped 10 per cent annually after increasing 7.6 per cent in February, a bad sign for inflation, said Deepak Jasani, Head of Retail Research, HDFC Securities.

In a speech delivered at the Stanford Graduate School of Business, Stanford, California, the US Fed Chair Jerome Powell reiterated that the central bank will take a wait-and-see approach before dropping borrowing costs. However, his views that recent inflation figures did not “materially change” the overall picture offered support for risk assets, he said.

The US stocks finished higher on Wednesday as investors evaluated remarks from Fed Chairman Jerome Powell against strong US economic data that suggests the need for higher-for-longer interest rates, Jasani said.

According to V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, global and domestic cues indicate that the market is likely to consolidate in the coming days and start responding to the fourth quarter (Q4) results as they start coming.

“So, Q4 results will be the next major trigger for the market from a sectoral and stock-specific perspective. The market expects good results from autos, capital goods, telecom and select pharmaceuticals,” he said.

Financials, too, will report good results despite some NIM (net interest margin) compression and, therefore, are likely to be favoured by investors. IT results will be tepid and, therefore, the management commentary will be more important than the results.

The market will also await the outcome of the Reserve Bank of India’s (RBI) monetary policy decision which will be announced on Friday, April 5. The RBI’s Monetary Policy Committee (MPC) is expected to keep the repo rate – the key policy rate – unchanged at 6.5 per cent on concerns over food inflation risks, which could impact the overall consumer price-based inflation (CPI) number. The six-member rate-setting panel may also maintain the policy stance of ‘withdrawal of accommodation’ in the upcoming policy.

On Wednesday, Nifty Midcap 100 crossed the 50,000 mark for the first time. The index opened at 50,101.10 compared to the previous close of 49,736.70.

Among the NSE firms that gained the most included, HDFC Bank, NTPC Ltd, Power Grid Corporation of India Ltd, Adani Enterprises and Hindalco Industries Ltd.