Mumbai: The stock market experienced a tough week, with both Sensex and Nifty facing a significant decline. The main indices, Nifty and Sensex, declined by 2.7 percent and 2.2 percent, respectively.
Going forward, domestic macros are largely favouring the market, with the unveiling of strong Purchasing Managers’ Index (PMI) data and the Reserve Bank of India (RBI)’s strong economic growth forecast for FY25, market experts said on Saturday.
India’s manufacturing industry regained growth momentum in October and quicker increases in factory production and services activity supported the acceleration. According to the latest HSBC ‘flash’ PMI survey compiled by S&P Global, India’s private sector economy continued to showcase robust growth in October.
This week was challenging for investors and traders as markets saw a broad-based sell-off. The Nifty closed down by over 2.65 percent, slipping below 24,200 after two weeks of consolidation.
“October has been particularly tough, with the benchmark down more than 6 percent so far. The hardest hit was in individual stocks, particularly in the mid-cap segment, which has sharply declined over the last couple of weeks,” said Rajesh Bhosale, Equity Technical Analyst at Angel One.
The week’s focus has been the steep drop in mid-caps, but some selective positive traction could emerge, especially with the festive season. Also, investors with a long-term view might consider staggered buying of quality stocks from these levels, as advised by experts.
Investor psychology turned a bit gloomy due to the ongoing geopolitical tensions and a knee-jerk reaction from FIIs, which dragged the sentiment.
Market experts say sustained selling by FIIs and a lack of triggers in the domestic market may impact the near-term sentiment in the market.
However, the resilience of recent manufacturing data suggests the plausibility of an economic recovery in H2 FY25, which should encourage investors to accumulate quality stocks.
“A moderation in valuation, a pickup in earnings in H2 FY25, and an expectation of an RBI rate cut in 2025 will support the market. Sectors to watch include consumption, FMCG, infrastructure, new-generation companies, manufacturing, and chemicals,” experts said.
Sensex closed at 79,402.29 on Friday after falling 662.87 points or 0.83 per cent. At the same time, Nifty fell 218.60 points or 0.9 per cent to 24,180.80.
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–IANS
