In a clever move, benchmark indices mounted a comeback to recover from Monday’s losses as global markets rose as concerns about the global banking sector eased. Sentiment was also boosted by reports that the US Federal Reserve would raise interest rates in a very measured manner at the important meeting. The Fed must decide on interest rates by later on Wednesday.
The Dow Jones surged, and throughout Asia, the Shanghai Composite, the Korean Kopsi, and Hong Kong’s Hang Sang all followed. The Nifty increased by as much as 70 points in the early trade at 9.16 am, while the Sensex increased by 237 points. Stocks from the banking industry, such as ICICI Bank and State Bank of India, were among the early gainers in the market. The value of the rupee increased by 10 paise to 82.53 to the dollar.
The market should trade between 18x and 18.5x one-year future earnings, according to MOAMC. “A reasonable market level of between 18000 and 18500 is implied with FY24 earnings still projected to be close to 1000. On a pre-tax basis, debt continues to appear more favourable, although as compared to the previous period, its attractiveness has decreased due to some bond rallying and stock market declines. Yet, more significantly, due to altered taxation on MLDs, the post-tax attractiveness of debt has decreased significantly for Indian investors. This should lead to HNIs allocating more money to stock in the upcoming fiscal year “the report on brokerage.