New Delhi, Jul 14 (IANS): Selling by domestic institutions is emerging as a countervailing force putting brakes on the rally -- this explains the resistance which Nifty is facing at 19,500, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Another important trend, hugely significant from the market perspective, is the steady decline in the dollar.
Dollar index is now below 100, which is the lowest level since April 21, 2022. This declining dollar is favourable for emerging markets and India being the most-favoured emerging market, the FPI flows are likely to sustain, he added.
India VIX has dipped below 11 indicating that there is no fear in the market despite record highindexlevels.
Following the smaller-than-expected trend in consumer price index, the US producer price index also showed a smaller-than-expected trend yesterday with a marginal increase of only 0.1 per cent YoY. This declining trend in inflation in the mother market of the US and the resilience of the US economy are the two pillars of support for global equity markets, he added.
BSE Sensex is up 152 points in morning trade on Friday at 65,711 points led by IT heavyweights.
Tech Mahindra, Infosys, HCL Tech are each up by more than 2 per cent.