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Sensex Today: Sensex and Nifty gained in Tuesday’s trade on value buying. Will the Indian stock market stage a recovery going forward?
Will the bulls return to the Dalal Street? (Representative/PTI File)
Sensex Today: On Tuesday, key benchmark indices BSE Sensex and Nifty 50 were trading higher, tracking gains in global markets.
The BSE Sensex was trading 1,019 points, or 1.32 per cent, higher at 78,358. The Nifty50 was up 300 points, or 1.28 per cent, trading at 23,754 at an intra-day high.
The market capitalisation of all BSE-listed companies surged by Rs 6 lakh crore to Rs 435.08 lakh crore
BSE Sensex entered correction on Monday, weighed down by concerns over foreign outflows and weak corporate earnings. The Nifty50, which signaled a correction on November 13, extended its losing streak to the longest in over 20 months.
However, the Relative Strength Index (RSI) for the Nifty is below 30, suggesting it is in oversold territory.
After Monday’s market crash, the Nifty and Sensex were down 11 per cent and 12 per cent from their record highs. Foreign investors offloaded nearly Rs 1,400 crore in the cash markets in yesterday’s trade.
All sectoral indices were trading in the green territory. The top performers were Nifty Energy, Realty, IT, and Auto. Gains in NTPC, Reliance, ONGC, and Power Grid lifted market sentiment. Realty companies like DLF and Brigade traded higher. Auto stocks like M&M, Tata Motors, and Bajaj Auto lifted the index nearly 2 per cent higher.
Sensex, Nifty To Stage Recovery Ahead?
Akshay Chinchalkar, Head of Research at Axis Securities, said that the last time that happened was in February 2023, which led to a relief rally and historically looking at the last decade, such downstreaks have mostly led to the market rebounding over the next 5 days.
Chinchalkar said the short-term momentum is also deeply oversold with the recent decline dropping below the regression channel drawn from the March 2023 lows, which means a bounce is overdue. “Holding the Nifty support range of 23,200-23,300 zone is key while the 23,680 level remains the immediate upside hurdle,” he said.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said that he feels that a quick and sharp recovery is not in sight. The momentum that drove the Nifty to its record peak of 26,216 in September is gone, he added.
There can be recoveries, which are unlikely to sustain given the selling mode of the FIIs and the concerns surrounding the weak earnings growth feared in FY25, he said.
Foreign Institutional Investors (FIIs) were net sellers of Indian equities on Monday, offloading shares worth Rs 1,403.40 crore, according to exchange data. In contrast, Domestic Institutional Investors (DIIs) were net buyers, purchasing stocks worth Rs 2,330.56 crore. This marks a rare instance in months where DII buying was nearly double the FII selling, signalling robust domestic support despite foreign outflows. Year-to-date figures show FIIs have net sold equities worth Rs 2.84 lakh crore, while DIIs have offset the impact with net purchases totalling Rs 5.54 lakh crore.
“At best the market may consolidate around the present levels with sideways movements. Sustained up moves will emerge only when incoming data indicates earnings recovery,” he said.
A significant trend seen in recent days is the sustained weakness emerging in a large number of mid and small caps.
“Hundreds of such stocks, which had run ahead of fundamentals, and driven by momentum are reverting to mean. Investors need not rush in to grab these stocks which have more downside potential. In contrast, quality large caps are resilient and investors can stick to them,” Vijayakumar said.
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
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