Sensex Bounces Back On Strong Wall Street Handover, Rupee Gains 10 Paise

Benchmark indices staged a smart rally bouncing back from Monday's losses as global markets gained, following easing worries from the global banking sector. Reports indicate that the big US Fed meeting would adopt a very calibrated approach to hiking interest rates, which also aided sentiments. Decision on interest rates is due by the Fed later on Wednesday.

The Dow Jones rallied and across Asia, Korean Kopsi, the Shanghai Composite and Hong Kong's Hang Sang too followed. The Sensex was up 237 points, while the Nifty gained as much as 70 points in early trade at 9.16 am. Among the early gainers in trade were stocks from the banking sector including the likes of ICICI Bank and State Bank of India. The rupee too saw gains of 10 paise at 82.53 to the dollar.

Meanwhile, MOAMC 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. Debt continues to look more attractive (on a pre-tax basis), though when compared to the last period, its attractiveness has reduced with some rallies in bonds and falls in equities. However, more importantly, the post-tax attractiveness of debt has reduced considerably for Indian investors on account of changed taxation on MLDs. This should result in better allocation from HNIs into equity in the new fiscal year," the brokerage report.