Market optimism reigns as Sensex and Nifty bounce back from yesterday’s downturn, with FMCG and IT sectors leading the charge. Despite initial volatility, experts anticipate market resilience in the long term, contingent upon policy continuity.
Nifty’s FMCG index sees a significant surge, driven by gains in heavyweight stocks like HUL, ITC, and Britannia. Analysts predict a volatile phase until government formation clarity emerges but anticipate buying interest following the recent sell-off.
By early morning, Sensex climbs by 0.6% to 72,533, and Nifty rises by 125 points to 22,009, reflecting a balanced market breadth. Notable gainers include HDFC Bank, HUL, and ITC, while NTPC, Hindalco, and L&T witness declines.
Hindalco shares dip following news of postponing its IPO, while BEL faces a downgrade from CLSA, resulting in a 5% drop.
Experts like Pradeep Gupta foresee potential market resurgence post-political uncertainties, citing historical trends post-elections. However, they advise caution amid ongoing volatility.
Market indicators show a downward trend in India VIX, with midcap and smallcap indices experiencing marginal declines.
Rahul Singh emphasizes sectoral scrutiny, while Amar Ambani flags concerns over rich valuations and coalition risks, suggesting a potential correction.
As investors await policy directions and the Union Budget, market sentiment remains cautiously optimistic amidst evolving political and economic landscapes.
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