Stock market gains momentum at midday rally on Monday, Sensex and Nifty post gains
Oct 28, 2024
Mumbai (Maharashtra) [India], October 28 : After a gloom last week the Indian stock market witnessed a significant upward trend during midday trading on Monday, with both the Sensex and Nifty posting substantial gains.
At the time of filing this report the Sensex was up by over 1100 points while the Nifty climbed about 300 points.
Ajay Bagga, a banking and market expert, says that the upward movement in the market can be attributed to short coverings ahead of the monthly expiry on Thursday, October 31st.
Bagga said, "Indian markets are seeing a mild bounce today. The reason could be short covering going into the monthly expiry on Thursday, 31st October. Traders normally have a propensity to carry over longs more frequently than shorts. Also, the FII selling pressure in the derivatives market saw a peering out by the last trading day of last week. Any reduction in the FII selling will see a bounce in the markets."
Experts also say that the midday rally in the Sensex and Nifty indicates a shift in market sentiment, with a possible return of buying interest as FII selling pressure subsides.
Shriram Subramanian, Founder and MD, InGovern Research Services, said, "This seems like a deadcat bounce amidst the continuous selling by FIIs. India is still relatively over valued compared to other markets, notably China. However some stock specific buying would be seen as domestic investors continue to buy stocks of good companies."
Among the Nifty companies, 38 stocks advanced, while 12 declined. The top gainers at midday included Shriram Finance, Adani Enterprises, ICICI Bank, Mahindra & Mahindra (M&M), and IndusInd Bank. On the other hand, Coal India, Bharat Electronics Limited (BEL), SBI Life, Tech Mahindra, and Axis Bank were the top losers.
The positive performance of key banking and finance stocks suggests renewed investor confidence, potentially paving the way for further gains as the week progresses.
With the upcoming monthly expiry and reduced FII selling, traders and investors will be closely watching the markets for any signs of sustained momentum in the days ahead.
