Stock market today: After a sharp decline on Monday, there was strong buying interest in bank stocks listed on Dalal Street in Tuesday morning trading. The Bank Nifty index today opened higher at 45,056 level and reached an intraday high of 45,183 mark, registering an intraday gain of around 300 points within an hour from the opening bell.
Oversold conditions and talk of soft US CPI data are driving bank stocks higher, according to stock market experts. They say bank stocks have been hit hard in the last few sessions, but after India's soft inflation data for January 2024, the market expects US CPI data to be soft as well. He said he is doing so. So, with weaker US inflation, the market believes the US Federal Reserve will be under pressure to cut interest rates.
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Why are bank stocks rising today?
Commenting on the reason for the rise in bank stocks in the Indian stock market, Saurabh Jain, vice president of research at SMC Global Securities, said, “Today's rise in bank stocks is due to weak inflation data for India in January 2024. This is likely due to two main reasons: 1) India's inflation statistics for January 2024 are weak, and 2) India's inflation statistics for January 2024 are weak.” “Soft U.S. Consumer Price Index (CPI) data is expected today, a topic that is fueling speculation about a near-term rate cut from the U.S. Federal Reserve. Bulls are focusing on bank stocks.”
Basab Capital founder Sandeep Pandey linked the weak CPI data in the US to the Indian stock market, saying, “In the recently held RBI MPC meeting, one of the members voted in favor of a rate cut. , the remaining members voted in favor of stable repo rates.'' If, as expected, the US CPI data softens, we expect rate cuts by the US Fed to be significantly reduced, as the US Fed will be under significant pressure to cut rates at the next US Fed meeting. This is followed by a number of central banks around the world, including India's Reserve Bank of India (RBI). ”
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Stocks to buy today
Basab Capital's Sandeep Pandey said on the bank stocks to buy today, you can consider stocks of SBI, HDFC Bank, ICICI Bank and Canara Bank in the medium to long term.
Disclaimer: The views and recommendations expressed above are those of individual analysts, experts, and brokerages and not of Mint. We encourage investors to check with certified professionals before making any investment decisions.
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