A morning walk down Dalal Street | Uptrend likely to resume only if Nifty closes above 11,000

Sensex snapped its 3-day losing streak and climbed over 400 points on Tuesday. The Nifty50 reclaimed 10850 levels and closed a shade below 10900 level.

The final tally – the S&P BSE Sensex rallied 464 points to end at 36,318 while the Nifty50 ended 149 points higher to close at 10,886. Both benchmark indices closed with gains of over 1%. 

What led to the rally – the market rally was supported by tax cut plan in China and ease in domestic CPI inflation to 2.19% for the month of December. Fall in 10-yr yield amid moderation in inflation and weak IIP print provide room for RBI to ease monetary policy in Feb.