Stock Market News: Sensex and Nifty 50 Start Monday on Positive Note
The domestic benchmark indices, the Sensex and Nifty 50, kicked off Monday’s session on a positive note, driven by gains in financials following post-results boosts in SBI Life Insurance and ICICI Bank.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted that the ongoing selling by Foreign Institutional Investors (FIIs) due to rising US bond rates continues to weigh on market sentiment. The impact of this selling on both stock and debt markets will persist as long as US inflation data dictates high bond rates.
After a five-day rally, the Sensex and Nifty 50 faced selling pressure on Friday as investors trimmed their exposure to banking and financial stocks amidst mixed global cues.
Traders noted that ongoing outflows of foreign funds, a weakening rupee, and escalating global crude prices further dampened market sentiments.
On Friday, the Sensex closed at 73,730.16, down 609.28 points, while the Nifty 50 ended at 22,419.95, down 150.40 points.
Looking ahead, Arvinder Singh Nanda, Senior Vice President of Master Capital Services Ltd, emphasized that key domestic and global economic indicators will influence market direction in the coming week. Events such as the Fed Interest Rate Decision, China Manufacturing PMI, Euro Zone CPI, India Federal Fiscal Deficit, Q4FY24 results, and ISM Manufacturing Prices will be closely watched.
Dharmesh Shah, Vice President at ICICI Securities, expressed optimism about Indian equities, projecting a Nifty 50 target of 23,400 post the general election outcome. He expects the index to challenge life highs of 22,800 in the upcoming week, with strong support at 22,100.
Shah’s positive outlook is supported by improving market breadth, a decline in India Vix indicating reduced market risk, and positive global market trends.
In terms of stock recommendations, Tata Power Co Ltd and Oil India Ltd were highlighted as potential buys with specific price ranges and targets.
It is important to note that the views and recommendations mentioned in the article are those of individual analysts and experts, and investors are advised to consult certified experts before making investment decisions.
