Global Markets Rally On Easing Bank Crisis, Bitcoin Tops $28000

Global markets staged a smart rally led by the Dow Jones which gained 380 points on Monday, while the S&P 500 gained 0.9%. The rally came a day after Credit Suisse was taken over by UBS, suggesting that the banking crisis across the globe maybe easing. Sentiments were also bolstered by news that JP Morgan would advise embattled First Republic Bank on strategic alternatives.

In Asia, the Australia S&P ASX 200 rose 1.10% higher, while South Korea's Kospi was up 0.50% and the Kosdaq gained 0.24%. Indian markets are also expected to open strong with the SGX Nifty suggesting gains of 150 points. The Nifty had dropped 111 points on Monday, after falling as much as 264 points in intra-day trading.

Motilal Oswal Asset Management Company has maintained that the market should trade between 18x-18.5x one-year forward earnings. "With FY24 earnings still estimated to be close to 1000, it implies a fair market level of between 18000 and 18500," it said in its latest report.

Meanwhile, Bitcoin briefly topped the $28,000 for the first time in 9 months. The crypto has seen a solid rally over the last few weeks from levels of $20,000. Investors were also anticipating the US Fed slowing the pace of increase in interest rates and signaling a coming pause this week.