MUMBAI: Global tailwinds assisted the sensex close above 60,000 when again after 2 weeks however some market experts stated the two-day old rally could fizzle out after the Tuesday break due to the trading vacation on Holi.Market gamers feel that regardless of strong financial information in the US amidst raving inflation, the Fed might not raise rates as strongly as was being expected previously.
This has actually caused a global rally, consisting of in India.
The strong gains in Adani Group stocks also increased sentiment, market gamers said.The sensex began on a strong note to cross 60,000 and reached an intra-day high of 60,500.
However, some profit taking during closing hours pulled it down and it closed Mondays session at 60,224, up 415 points.Buying by FIIs has improved belief, says analystThe NSE Nifty got 117 points to close at 17,711 on Monday.According to Vinod Nair, head of research, Geojit Financial Services, one of the significant concerns that dominated in the market in the last couple of weeks was the worry of aggressive US Fed policy action, which caused a rise in treasury yields and US dollar.
In addition, there were unpredictabilities surrounding Adani Group stocks.
All of these have now moved in favour of the bulls, as US officials lowered the likelihood of a sharp rate walking, forcing yields and the dollar index to moderate.
In addition, improved market sentiment due to the foreign bulk offer at Adani, the oversold phase of the domestic market, and FII buying (have) assisted sharpen the recovery, Nair composed in a note.Among sensex stocks, Infosys, RIL and HDFC contributed the most to the days rally while profit taking in L&T, Tata Steel and ICICI Bank limited the gains partially.
Of the 30 sensex constituents, 24 closed greater while six closed in the red.
Chartists stated the Niftys inability to close above the 17,800-mark signified weak point for the market.