NEW DELHI: Indian stock indices have returned to the green zone Tuesday, after having traded lower for the past seven consecutive sessions. Today’s rise can somewhat be attributed to value buying.
The Sensex closed at 77,578.38 points, up 239.38 points or 0.31 per cent, while Nifty closed at 23,518.50 points, up 64.70 points or 0.28 per cent. Nifty auto, media, realty, and consumer durables were the top movers in the sectoral space, while metal, PSU bank, and oil and gas were the losers, NSE data showed.
At one point, they were upwards of over 1 per cent, to later witness a profit booking at higher levels. “An important takeaway from the recent market trend is that a quick and sharp recovery is not in sight”, said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
“There can be recoveries which are unlikely to sustain given the selling mode of the FIIs and the concerns surrounding the weak earnings growth feared in FY25. At best the market may consolidate around the present levels with sideways movements. Sustained up moves will emerge only when incoming data indicates earnings recovery”, Vijayakumar added.
“A significant trend is the sustained weakness emerging in a large number of mid and smallcaps. Hundreds of such stocks, which had run ahead of fundamentals, and driven by momentum are reverting to mean. Investors need not rush in to grab these stocks which have more downside potential. In contrast, quality largecaps are resilient and investors can stick to them”.
Until Monday, benchmark stock indices in India slumped, extending the losses for the seventh straight session and touching a new multi-month low. The continued fall in the indices was sustained due to a range of factors, including relatively weak Q2 earnings, sustained foreign fund outflows, and rising domestic inflation – both retail and wholesale. (ANI)