Shillong, July 14: The Chief Investment Strategist at Geojit Financial Services, V.K. Vijayakumar, explains that the Nifty is facing resistance at 19,500 due to selling by domestic institutions, which acts as a countervailing force to the market rally.
Another significant trend that holds market implications is the continuous decline of the US dollar. The dollar index has dropped below 100, reaching its lowest level since April 21, 2022. This decline is beneficial for emerging markets, and as India is a favored emerging market, Foreign Portfolio Investment (FPI) flows are expected to continue.
As per IANS, the India VIX has fallen below 11, indicating a lack of fear in the market despite record-high index levels.
Furthermore, the US producer price index has shown a smaller-than-expected trend with a marginal YoY increase of only 0.1%. This declining inflation trend in the US, along with the resilience of the US economy, provides support to global equity markets.
In morning trade on Friday, the BSE Sensex has gained 152 points, reaching 65,711 points, driven by IT heavyweights. Tech Mahindra, Infosys, and HCL Tech have each experienced an increase of over 2%.
