Sensex Reclaims 80,000 Mark Aided by Infosys

The BSE Sensex began November 26, 2024, on a buoyant note, buoyed by Wall Street’s overnight rally. Investors cheered Donald Trump’s Treasury secretary nominee, which spurred a record-high closing for the Dow Jones. This “Bessent Boost” uplifted sentiment globally, trickling down to the Indian stock market.

BJP-Led Mahayuti’s Victory Adds to Market Optimism

Domestic cues added fuel to the rally, particularly the BJP-Led Mahayuti’s landslide victory in Maharashtra. The political stability reinforced confidence among market participants, prompting sharp gains in the initial sessions. However, profit-booking ensued after the sharp rally, leading to a temporary dip below the 80,000 psychological mark.

Infosys Rallies Over 2%, Aiding Sensex Recovery

Despite the mid-session correction, IT bellwether Infosys played a pivotal role in the market’s recovery. Its stock surged over 2%, driving the Sensex back above the crucial 80,000 level in the latter part of the trading session.

Valuations in Focus: PE Ratio at 22.9

As the market steadied, participants turned their focus to valuations. The PE ratio of the Sensex hovered around 22.9, below its 1-year, 2-year, and 5-year averages, indicating that the market may still offer reasonable opportunities despite the rally.

What’s Next for the Market?

Going forward, domestic cues and global developments will shape the Sensex’s trend. Key international events include the release of minutes from the November FOMC meeting and the U.S. Personal Consumption Expenditures Price Index (PCE) data on November 27. These data points are critical in gauging inflation trends and potential interest rate decisions, which could impact global markets.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.