Fed and Trade hopes props up the Sensex: Angel Broking
“On a day when most of the global markets touched a 4-month high, the Sensex bounced by 403 points. The bounce is all the more interesting as it comes on the back of a systematic 1620 points correction in the Sensex in the last 9 days. Apart from the normal short covering ahead of the F&O expiry, there were 3 fundamental triggers for the market bounce on Wednesday.
Firstly, Donald Trump has hinted that the trade tariff deadline would be extended beyond March 01st. That will give more time for the US and China to thrash out a deal before the 25% tariff on Chinese imports kick in. That should be positive for trade hopes. Secondly, the Fed minutes are expected later tonight wherein Powell is expected to offer a dovish stance. That would give the RBI room to maneuver interest rates lower in the coming months. Lastly, oil prices tapered during the day putting less pressure on the and consequently on the Sensex too…”