India’s benchmark indices gained on Monday, recovering from last week’s 12-month lows. Market experts attributed the rebound to buying by investors after a sharp decline.
The Sensex rose by 679 points to close at 80,081.30, while the Nifty gained 186.55 points, ending at 24,367.35. All sectoral indices advanced, with Nifty PSU Bank surging 3.8 percent.
Last week, the Nifty 50 and Sensex dropped by 2.7 percent and 2.2 percent, respectively, over five consecutive sessions.
“The upcoming U.S. presidential elections and the uncertainty surrounding them will continue to weigh on markets,” said V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Nifty has corrected by about 8.3 percent from its recent peak, while mid and small-cap indices have seen corrections of 9-10 percent.
Foreign portfolio investors (FPIs) sold Rs85,790 crore worth of Indian stocks in October, according to NSDL data. FPIs had been net buyers for the previous four months, supporting the market’s recent bull run. However, foreign outflows and weak corporate earnings for India Inc in the July-September quarter contributed to the market’s recent downward trend.
“The market rebounded after last week’s continuous selloff. Positive earnings from banks and a drop in oil prices, driven by expectations of easing tensions in the Middle East, boosted investor sentiment,” said Vinod Nair, Head of Research at Geojit Financial Services.
“Stability in the broad-based rally requires more evidence from earnings, which are currently in the doldrums of weak demand and margin pressure. We expect companies with a less leveraged balance sheet and growth prospects to outperform when the market stabilizes,” Nair added.
Jitendra Gohil, Chief Investment Strategist at Kotak Alternate Asset Managers, said, “While global markets, including emerging markets, have remained relatively stable in October, the Indian equity market has faced considerable pressure, with the MSCI India Index declining by approximately 8 per cent from its late September peak.”
(With ANI input)
