The Friday frenzy on Dalal Street has brought back benchmark indices firmly into the green for the week, with all frontline indices rising nearly two percent on weekly basis. Experts are attributing the strong rebound seen on November 22 to the Sensex and Nifty factoring in the state election outcome being in-line with the exit poll findings.
Aishvarya Dadheech, Founder and CIO, Fident Asset Management said a positive ruboff from the exit poll indications were due in the stock market, which got buried by the news flow relating to the bribery indictment of Gautam Adani and others.
Read More: Maharashtra exit polls - thumping victory for Mahayuti
"The positive ruboff from the exit poll on Maharashtra and Jharkhand elections was due, but there was a lot of pressure on Thursday due to the Adani bribery indictment. If you see, even the mid and smallcaps spaces did not fall much, despite Thursday's selloff. This rally is due to the exit poll factor, as well as valuation comfort," Aishvarya Dadheech said.
With the strong rebound on November 22, Nifty had snapped a two-week losing streak, helped by the likes of Power Grid, M&M, UltraTech and Titan, in a week that saw broad-based recovery.
On an intra-day basis Nifty managed to touch the high of 23,950 in trade, and Sensex reached 79,200 in trade, adding nearly Rs 7.58 lakh crore in market capitalisation on Friday. This was the biggest single-day gain on Nifty in five months.
Even Adani Group stocks saw buying interest, and managed to recover from the lows of the session.
In conversation with CNBC-TV18, Anurag Singh from Ansid Capital said India is the only market in the world right now that is talking about a 20-year structural story. He pegs a 25,000-26,000 Nifty level by end of 2026 as 'decent'.
Aman Chouhan, Fund Manager at Abakkus Asset Manager is slightly circumspect, and told CNBC-TV18 that the rebound was led by short covering, and one cannot say that bulk of the selling is behind us. He fears election outcome on November 23 may lead to 'short-term fluctuations' in the stock market next week, and advices investors to keep an eye out for geopolitical tensions and global volatility. Valuations in certain sectors are still high, and investors should be cautious in their approach, he added. Aman added that the shift away from Indian equities towards Chinese stocks should reverse now.
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