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Indian stock exchanges are closed Tuesday on the occasion of Diwali-Balipratipada, with normal trading activities to resume on Wednesday.
Indian stocks traded weak on Monday, following a one-hour bumper Muhurat trade on Diwali evening on Sunday. Benchmark Sensex and Nifty were 0.5 per cent lower at the closing bell yesterday. The next stock market holidays are on November 27 and December 25, for Gurunanak Jayanti and Christmas, respectively. "The good beginning for Samvat 2080 with a 100-point rally in Nifty is indicative of the bullish sentiment in the market. The market is climbing walls of worries posed by 2 wars and a slowing global economy. This happens in a bull market. Investment strategy should be based on this basic understanding of market behaviour," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. "An important feature of the market is that it is up-trending despite sustained FPI selling. This means that even if FPIs continue to sell, the market will remain resilient if the selling is in small quantities. Of course, big selling by FPIs will negatively impact markets," Vijayakumar added. Foreign portfolio investors (FPIs) sold stocks worth Rs 14,768 crore and Rs 24,548 crore, and Rs 5,806 crore, respectively, in September, October, and so far in November, data from National Securities Depository showed. Going ahead, further easing of retail inflation in India may give a breather to the investors and fresh cues to the markets. Retail inflation in India continued to ease through October, supported by a relative decline in some of the sub-indexes. The October consumer price index (CPI) came at a four-month low of 4.87 per cent against 5.02 per cent the previous month, official data showed. The retail inflation in India though is in RBI's 2-6 per cent comfort level but is above the ideal 4 per cent scenario. Meanwhile, wholesale inflation in India based on the Wholesale Price Index continued to stay in the negative zone for the sixth straight month through September. Data for October is due to be released anytime this week. "Entering into Samvat 2080, we believe India would continue to shine and expect markets to maintain its outperformance. We believe that over the next couple of quarters, sector rotation will be an important driver along with the overall market uptrend. We expect sectors like BFSI, Discretionary Consumption, Construction and Real Estate and High Growth Niche Sectors to drive the overall market uptrend," said Motilal Oswal, Group MD and CEO, of Motilal Oswal Financial Services. (ANI)
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