Stock market today: The soft landing scenario for the US economy and expectations of a rate cut by the Fed in September are intact, analysts said adding that the development could will provide the global support to the ongoing bull run. 
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Stock market today: The soft landing scenario for the US economy and expectations of a rate cut by the Fed in September are intact, analysts said adding that the development could will provide the global support to the ongoing bull run. Benchmark indices Sensex and Nifty gained as soon as the opening bell ran on Monday, thanks to the June US PCE inflation data that could turn the US Federal Reserve dovish in its July 30-31 policy meet, with markets globally now factoring in the first interest rate cut as soon as September. The quarterly results of a couple of banks including ICICI Bank, Punjab National Bank and Bandhan Bank came in better-than-expected, lifting the banking pack. The global stock rally helped and so did strong foreign flow trend and firm technical cues.
The BSE Sensex hit a fresh record high of 81,722.13 level. The 30-pack index was up 389.41 points or 0.48 per cent. The NSE barometer Nifty 50 hit a high of 24,980.45. It was later trading 110.75 points, or 0.45 per cent, higher at 24,945.60.
The undercurrent of this bull market has turned stronger on positive global cues, said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The soft landing scenario for the US economy and expectation of rate cut by the Fed in September are intact, he said adding that the development could will provide the global support to this bull market.
The decline in the US 10-year bond yield to 4.17 per cent and decline in Brent crude to $81.20 a barrel level are other global supporting factors, he noted.
The market is likely to ignore the valuation concerns and march ahead, Vijayakumar said adding that the market has largely ignored the good results of banks on fears of potential margin compression due to slow growth in deposits.
"The momentum has definitely picked up for the bulls again, but one should avoid complacency as momentum indicators are still trading in overbought territory. Traders should ideally continue with the current momentum and trail their stop losses higher. The major positive last week was the remarkable performance of mid-cap and small-cap stocks, which was the first sign of market strength. Traders can focus on such opportunities for outperforming trades," said Sameet Chavan of Angel One.
FPI investment in June stood at Rs 33,688 crore so far.
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