Furthermore, the Indian rupee currency experienced a sharp appreciation against the U.S. dollar – the USD weakened 0.6% against the INR to INR70.49. Investor’s believed the stronger currency could attract more foreign private investment inflows. A the dip in crude oil prices also bolstered the bullish sentiment.
Meanwhile, market sentiment also strengthened on a boost in India’s services and manufacturing activity, which both gained momentum in February, driven by rising new work orders that fueled a faser increase in output and job creation.
“While today’s gains may extend in the coming sessions, we prefer to remain cautious on equities at higher levels. Domestically, the extent of geopolitical risk between India and Pakistan will be closely monitored. Any re-escalation in the coming days could be negative for the stocks. Globally, the developments on US-China trade front, progress on Brexit and movement of crude oil prices and currency would be actively tracked by the investors. Investors should continue to accumulate fundamentally sound companies with strong growth prospects. Considering high volatility, traders should avoid taking any risky leveraged positions,” Jayant Manglik, President – Retail Distribution, Religare Broking, told the Economic Times.
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