Snapping six-day losses, stocks rise again; BJP's Haryana assembly poll performance lent support
Oct 08, 2024
New Delhi [India], October 8 : Snapping six-day losses, Indian stock indices closed in green Tuesday, primarily due to buying at lower levels and with BJP heading for a third straight term in Haryana.
Sensex today closed at 81,634.81 points, up 584.81 points or 0.72 per cent, while Nifty closed at 25,013.15 points, up 217.40 points or 0.88 per cent. Barring Nifty metal, all sectoral indices rose, with Nifty media, auto, pharma, oil and gas the top movers.
"Traders should consider using this recovery to lighten positions and remain selective for long trades. We continue to favor IT and pharma stocks for their resilience and recommend careful stock selection in other sectors," said Ajit Mishra - SVP, Research, Religare Broking Ltd.
Till Monday, Sensex and Nifty logged sixth straight session losses, with analysts attributing the fall to a consolidation after the recent bull run. The latest decline in the indices is also attributable to escalated tensions in the Middle East after the latest attack on Israel by Iran.
Over the past week, Sensex and Nifty dipped 4-5 per cent each.
"The best strategy now is to accumulate high quality fairly valued bluechips like the leading financials and IT stocks," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Prior to the latest slump, the US Federal Reserve's monetary policy committee loosening interest rate by steep 50 basis points, in particular, had been lending fresh support to Indian stocks. The steeper the rate cut in the US, the more the tendency to flight of capital to alternative investment destinations, including India.
Continued buying by foreign portfolio investors (FPIs) also somewhat supported the stock indices. Foreign portfolio investments in the Indian stock market remained positive for the fourth consecutive month through September.
For fresh cues, investors in India will now monitor the RBI monetary policy outcome slated for Wednesday. The RBI kept the repo rate unchanged at 6.5 per cent, in nine straight meetings.
Besides, the investors will eye Q2 earnings of India Inc.
"Looking ahead, the festive season is expected to drive consumer spending, potentially providing a boost to various sectors, particularly retail and gold. However, geopolitical developments and economic indicators will be crucial in shaping market dynamics," Vikram Kasat, Head - Advisory, PL Capital - Prabhudas Lilladher, said.
