Photo Source: ANI
Indian stocks start fresh week on a positive note
New Delhi [India], March 27, 2023(ANI): Indian stocks rose marginally and started fresh with positive momentum after experiencing losses during most part of the previous session. Today's marginal rise can be partly attributed to value buying by investors.
At the time of writing this report, benchmark stock indices Sensex and Nifty were 0.3-0.4 percent higher.
"Markets remained under pressure for the third successive week and lost nearly a percent. Initially, weak global cues were weighing on the sentiment however rebound in select index majors eased some pressure in the middle," said Ajit Mishra, VP - of Technical Research, at Religare Broking.
"The tone again turned negative in the final sessions, tracking mixed signals from the US Fed and news of a hike in STT (securities transaction tax) by the government," Mishra.
Last week, largely, the fall was in line with weakness in the US markets, which were volatile as the US Federal Reserve further hiked interest rates to bring down inflation to its target even as volatility in the banking system continued due to the recent collapse of some banks.
Monetary policy tightening in the form of interest rate hikes in the advanced economies is detrimental for India, and other developing countries, as investments tend to shift to those advanced countries where returns on investments are reasonable and stable.
The US monetary policy committee, seeking to achieve maximum employment and inflation at the rate of 2 per cent over the longer run, hiked the key interest rate by 25 basis points to 4.75-5.0 per cent.
"The element of uncertainty in global markets continues," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
"Actions by US authorities have brought near-term stability in the US banking system; but we don't know what lies ahead. Investors should remain cautious till stability returns," Vijayakumar said, referring to the SVB-led banking crisis in the US.
The tech lender and favourite of startups Silicon Valley Bank collapsed on March 10 and the contagion effect hit some other banks in a matter of just a week or two. A number of Indian startups have funds parked in the failed US-based Silicon Valley Bank. (ANI)