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The near-term market outlook has turned distinctly positive with the US economy’s soft landing narrative lifting sentiments globally and Chandrayaan-3's successful soft landing on the moon boosting sentiments in India, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Weakening US economic data, particularly the decline in the US manufacturing PMI from 49 to 47, has led to sharp decline in the US 10-year bond yield by 14 bp to 4.19 per cent. This might turn the short-term cycle of capital flows again in favour of EMs like India, he added.

The sudden reversal in the declining trend of INR also is indicative of this shift in global macros favouring India in the near-term, he said.

However, investors should remember that sentiments are transient and the medium to long-term trajectory of the market will be driven by economic growth and corporate earnings.

The recovery in Bank Nifty, which is driven by fundamentals and fair valuations, augurs well for the Nifty, he said.

BSE Sensex is up 177 points at 65,610 points having given up morning gains.

Indusind Bank, Ultratech Cement and Asian Paints are up over 1 per cent.