India stocks recover after logging over one year low; Sensex up about 700 pts
Oct 28, 2024
New Delhi [India], 28 October : After logging an over one year low last week, Indian stock indices gained momentum on Monday, possibly due to value buying by investors.
Sensex closed 679 points higher at 80,081.30 points, whereas Nifty settled at 24,367.35 points, up 186.55 points.
All Nifty sectoral indices were in the green, with the Nifty PSU bank the top mover at 3.8 per cent.
Last week, the Nifty 50 and the Sensex shed 2.7 per cent and 2.2 per cent, respectively.
"The imminent US presidential elections and the uncertainty associated with that will continue to weigh on markets," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
The Nifty corrected by about 8.3 per cent from the recent peak, the mid and small cap indices corrected by 9-10 per cent, respectively.
So far in October, foreign portfolio investors (FPIs) sold Rs 85,790 crore worth Indian stocks, with a few sessions to go in the month, NSDL data showed. FPIs were net buyers past four months, supporting the latest bull run in stocks.
Latest foreign fund outflows and relatively weak India Inc earnings in the July-September quarter weighed on the stock indices, off late.
"The market exhibited a rebound after continuous selloff last week. Positive results from banks and a slump in oil prices in expectation of an ease in retaliations in the Middle East aided investor sentiment," said Vinod Nair, Head of Research, 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.
While global equity markets, including Emerging Markets, have remained largely 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, said Jitendra Gohil, Chief Investment Strategist, Kotak Alternate Asset Managers.
