MUMBAI: Equity markets were at their capricious best on Tuesday, shrugging off all the slowdown fears to regain all of Monday’s losses and end the day – Sensex at 38,233.41, up 424 points, and Nifty at 11,483.25, up 129 points.
One view coming from the US that changed the Asian markets bullish perhaps was the analyst explanations that the yield inversion is not a sure-shot indicator of a recession, though there may be a slowdown. According to a Bloomberg report, the Goldman Sachs Group said “equity and risky assets in general can have positive performance with a flat yield curve”. The agency also quoted former Federal Reserve chair Janet Yellen as saying that inversion happens very easily and doesn’t signal on its own that a US recession is imminent.
For domestic markets, the hope is that emerging markets like India may be safe-haven investing options amidst all the chaos about US slowdown and Brexit confusion.
“A long bull candle was formed today, which has filled the opening down gap of last session at 11,435 levels. Technically, this pattern is signalling a sharp comeback of bulls in the market,” said Nagaraj Shetti, technical analyst, HDFC securities.
Jet Airways stock rose as much as 9 per cent intraday before closing at Rs 271 with 6.5 per cent gain. DLF, which announced a QIP offer, also saw shares rise 3.8 per cent to close at Rs 196. DLF’s QIP offer, as well as Prudential’s offer for sale in ICICI Prudential Life Insurance, saw positive response, indicating the overall mood.