




Experts said that the market appears to have discounted the weak economic growth beforehand, taking cues from Q2 corporate financial results. Now, the markets will closely watch RBI Governor's upcoming speech for insights into the mid-term policy approach.
While the weak GDP data is expected to dampen the market sentiment in the immediate term, experts said it could also have potential implications on monetary policy easing and broader investor confidence.
The recent correction in Indian equities has made valuations more reasonable, encouraging selective buying. Also, the structural undercurrent from domestic investors remains strong, offsetting FII selling.
A combination of weak global cues, profit-booking ahead of the monthly F&O expiry, and sectoral pressures led by IT and auto stocks weighed on Indian share market sentiment today.
MK Ventures' Madhu Kela believes the recent fall has helped in the consolidation phase, and the stock market is extrapolating weak earnings of previous two quarters for the rest of the year, which should revive.
IT and auto stocks were the top drags on the Nifty, with sectoral indices falling 2.3 percent and 1.3 percent, respectively. The decline in IT stocks follows overnight the US inflation data, which signalled a slower-than-expected trajectory for rate cuts.
JPMorgan Pvt Bank has advised investors to maintain balance between offense and defense, with private equity poised to rise , while real assets could 'insulate' against geopolitical and inflation risks.
Sensex and Nifty are in a positive trend following the state election results, with the NSE trying to consolidate near 24,500. The recent correction of about 8 percent from September highs has brought valuations to more reasonable levels.
Foreign institutional investors (FIIs) have reduced their long positions in index futures, with a dip in the long-short ratio to 34.89 from Tuesday’s 36.74. Nifty faces immediate resistance at 24,350–24,400.
The September quarter earnings picture showed that the broad-basing of earnings has moderated, as it was the largecaps that primarily drove the September quarter earnings growth for the Nifty 500 universe.
With FIIs strengthening their long positions and Nifty’s support at 24,200, traders are closely watching the 24,350 level for a breakout. Sustained movement above this resistance could drive the index higher.
The morning rally in Sensex and Nifty, driven by short covering and enthusiasm over BJP-led Mahayuti alliance’s landslide victory in Maharashtra, began to wane as investors took a more cautious stance amid weak corporate earnings.
Nifty futures saw a significant drop in cumulative open interest (OI) across current, next, and far-month series, indicating further short covering on 25 November. The changes in the option chain showed Nifty entering into a narrow range.
The BJP-led Mahayuti alliance’s landslide victory in Maharashtra is expected to act as a near-term positive trigger for the Indian equity market. The GIFT Nifty also hints at a solid start for the Nifty 50 and the Sensex as it trades at a premium of over 400 points.
The market valuation of HDFC Bank jumped Rs 40,392.91 crore to Rs 13,34,418.14 crore, the most among the top-10 firms. Tata Consultancy Services (TCS) added Rs 36,036.15 crore to Rs 15,36,149.51 crore in its valuation.
FIIs boosted long positions and investors covered shorts in the derivatives market ahead of state election results, signalling cautious optimism. Key levels for Nifty include resistance at 24,000 and support at 23,500.
Today's bounceback in the market followed a sustained correction that had weighed heavily on sentiment. Benchmark equity indices gained 2.5 percent, with BSE Sensex jumping nearly 2,000 points and NSE Nifty reclaiming 23,900.
Goldman Sachs preferred medium-term themes, including housing, agriculture, defense, tourism and affluent India.
The sentiment of domestic investors might be tested if the FII sell-off sustains, said Citi.
Sensex and Nifty partially recovered intraday losses but still closed in red, with Nifty ending below 23,500. Market experts remain cautious due to weakness from underwhelming Q2 earnings and persistent selling by FIIs.