Sensex up more than 300 points led by Wipro, TCS

New Delhi, Feb 6 (IANS) BSE Sensex is up more than 300 points in Tuesday morning trade led by heavyweight IT stocks, Wipro and TCS.

Sensex is trading at 72,080.89 points up by 349.47 points on Tuesday led by gains in heavyweight IT stocks. Wipro is up three per cent, TCS is up three per cent.

The near-term market trend indicates exhaustion and there are no clear positive triggers that can take the market to sustained new highs immediately, says V.K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

An important event coming up is the RBI meeting on February 8. But no positive triggers like a rate cut are likely from the RBI meeting, he said.

The global market construct also is challenging with the 10-year bond yield rising again to 4.13 per cent and the dollar index rising to 104.5. The positive takeaway is that the US economy is doing surprisingly well and a sharp global slowdown triggered by a possible US recession is very unlikely. This, along with declining inflation in the US can support global equity markets. Investors may wait and watch for new trends to emerge while remaining invested in this bull market, he added.

Deepak Jasani, Head of Retail Research, HDFC Securities, said Asian stocks declined as strong US economic data further reduced expectations for a swift Federal Reserve pivot to monetary easing. Nifty ended lower in the volatile session on February 5. At close, Nifty was down 0.38 per cent or 82.1 points at 21771.7. Nifty fell on February 5 forming a near bearish engulfing pattern post the shooting star pattern formed on February 4. It could now face resistance in the 21964-22126 band while 21522 could offer support in the near term. A move below 21137 could result in an accelerated down move in the Nifty.