Sensex is trading at 73,809 points, up by 160 points. Bharti Airtel is up more than 2 per cent.
V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said the undercurrent of the bullishness of this market has been reinforced by the market action during the last two trading days which saw Nifty spiking by 486 points from Friday’s lows. External factors like the high bond yields in the US and geopolitical concerns in the Middle East are not impacting the underlying bullish trend.
FPI selling triggered by high US bond yields is neutralised by aggressive DII buying, putting the FPIs on the back foot, he said.
The US market is strong despite continuous downgrades in expectations of rate cuts. The US economy has surprised by evolving from fears of a hard landing to hopes of a soft landing to the new reality of no landing. The market expectations of six rate cuts at the beginning of this year have sharply declined to two rate cuts now, and the market has taken this in its stride, he added.
“The only concern in the market now is the high valuations, particularly in the broader market. Investors may stick to the safety of fairly valued large caps,” he said.
IANS