Indian stock
indices extended the gains they managed to accumulate last week through Monday
morning opening bell, tracking firm overseas market cues. Sensex and Nifty were
about 0.5 per cent higher each.
Snapping two weeks
of cumulative losses, Indian stock indices regained some of their lost ground
last week, in line with their global peers. On a cumulative basis, the indices
gained 1.4 per cent each over the course of Monday-Friday.
The US Federal
Reserve keeping the key policy rate unchanged for the second straight time at
5.25-5.50 per cent, as was widely expected, also boosted the stocks globally.
US jobs data for
October showing that it slowed more than expected raised hopes that the US
Federal Reserve may be done with its interest rate hiking spree.
“The ability of
stock markets to climb walls of worries is manifesting clearly in these
troubled times. Buy on dips strategy has worked well for investors with
risk-appetite. The market construct now is favourable for the bulls despite the
uncertainty surrounding the Israel-Hamas conflict,” said Geojit Financial
Services Chief Investment Strategist VK Vijayakumar.
“Even though the small
cap index is showing resilience, valuation comfort and safety are in large
caps. Financials and automobiles are on a strong wicket. For IT, momentum is in
mid-caps.”
Going ahead into
this week, corporate results of Nifty 50 companies such as Mahindra and
Mahindra, Adani Ports and Special Economic Zone, Power Grid Corporation, Coal
India, Eicher Motors, Hindalco Industries, and ONGC will give fresh cues to the
financial market.
Also, global crude
oil prices will be a key monitorable after key oil exporters Saudi Arabia and
Russia reportedly confirmed on Sunday they would continue with their additional
voluntary oil output cuts until the end of 2023, amid the conflict in West Asia.
ANI
