New Delhi: The Indian benchmark indices exhibited initial signs of a positive reversal this week, coinciding with the festive season.
According to market experts, the upward trend was bolstered by sustained healthy inflows from domestic institutions and a decline in oil prices.
However, the recovery was short-lived as bearish sentiments prevailed due to concerns over sluggish corporate commentary and potential earnings cuts.
Despite the recent market fall, Friday’s muhurat trading was marked by optimism, which signified positive investor sentiment.
According to Vikas Gupta, small case Manager and CEO at Omniscience Capital, the current market correction will likely start correcting itself in the next few weeks.
Possibly, somewhere between November 15 and January 15, the markets should start stabilising and demonstrate a definite trend, most likely positive,” according to Gupta.
At Friday’s closing, the Sensex was up 335 points, or 0.42 percent, at 79,724, and the Nifty was up 99 points, or 0.41 percent, at 24,304.
The global markets, including India, have been negative in October. This is most likely due to the uncertainty related to the US elections. This is the most important factor.
Salman Received a Call from ‘Underworld’ in 1990s Threatening to Abduct Me, Claims Somy Ali
“The second factor would be the FII tax-loss trade in December to book losses for the year. Finally, the January effect, which is a positive return for the markets in that month following the loss-selling in December,” said Gupta.
The best sector for long-term value investors is the banking space, especially PSU Banks. However, private banks, too, are available at significant discounts to their intrinsic values.
Experts also said the power sector, especially select PSUs, and the IT sector look attractive from a long-term investment perspective.
According to them, any reversal in FIIs’ stance will require improving domestic corporate earnings and attaining fair valuations.
Of late, emerging markets are also consolidating ahead of the US presidential election and the upcoming Federal Open Market Committee (FOMC) interest rate decision, they added.
For more updates Subscribe to Media Eye News
–IANS
(Photo: IANS)
