Indian stocks muted; investors now await Q2 GDP data for fresh cues
Nov 28, 2023
New Delhi [India], November 28 : Indian stocks were steady as the opening bell rang on Tuesday, largely due to the absence of any particular fresh cues. Investors in the US market too took a breather after the Thanksgiving holiday.
Benchmark indices -- Sensex and Nifty -- were just a few points higher from Friday's closing.
Indian stock markets were closed for trading on Monday on account of Gurunanak Jayanti.
Over the past month, the Indian stock indices have risen about 3 per cent on a cumulative basis.
"The market construct is turning favourable, aided by global and domestic factors. Globally, there is a tailwind from the US market, with S&P 500 up by 8.7 per cent so far this month," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
"Domestically, macro indicators suggest strong growth momentum in the economy. Record order inflows for capital goods companies and robust credit growth are strong indicators of the growth momentum in the economy. The only unknown now is the outcome of the state election results," Vijayakumar added.
The exit polls due on Thursday are likely to give indications of the election outcomes and its impact on the crucial General election in 2024.
Investors widely track elections, be it Assembly or General, to gauge possible future political developments.
"This week is likely to be volatile but a rally is likely soon. FIIs (foreign institutional investors) have already turned buyers. FII and DII (domestic institutional investors) money flows can trigger a large-cap led rally," Vijayakumar of Geojit Financial Services further said.
On the domestic front, investors now await the second-quarter GDP data, due on Thursday and the S&P Global Manufacturing PMI later on Friday.
India's GDP growth for the June quarter came at 7.8 per cent.
