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Domestic stock markets on Tuesday ended on a positive note, recovering from seven-month lows hit in the last trading session due to a decline in the rupee and investors worries over the earnings of domestic companies.
The domestic benchmarks, Nifty ended at 23,207.60, up 121.65 points or 0.53 per cent, while the BSE Sensex ended in green at 76,499.63, up 169.62 points or 0.22 per cent. Observing the trading in the domestic stock markets, Ajit Mishra--SVP, Research, Religare Broking Ltd--stated, "Markets found some relief after the recent downturn, ending the day with nearly half a per cent gain. Following a gap-up opening, Nifty edged higher during the initial trades, but pressure on select heavyweights limited the recovery." Experts stated that after yesterday's fall, markets are almost in oversold territory. There can be an initial surge from here, but the strategy will be to see whether investors use another "sell on every rise" move or markets head up from here. According to Mishra, the rebound was largely driven by oversold conditions, which often trigger such recoveries. "IT and FMCG, which had shown resilience until now, are beginning to exhibit signs of weakness, while other sectors remain under bearish pressure. We thus recommend adopting a stock-specific approach and prioritising risk management in the current environment," he added. "Expectations to mimic recent years' gains may lead to disappointment due to weak demand and slow GDP growth. In addition, India is heavily dependent on crude oil for fuel requirements, and the rising crude prices, adding to fixed costs, remain a big challenge in controlling inflation and boosting demand," stated VLA Ambala of Stock Market Today. She further added that the geopolitical tensions and a dip in the rupee are likely to persist, benefiting IT earnings but impacting other sectors. Amid these conditions, investors should focus on clear goals by planning accordingly and avoiding market noise," she added. On the National Stock Exchange (NSE) today, Adani Enterprises, Adani Ports, NTPC, Hindalco and Shriram Finance remained top gainers. On the other hand, HCL Tech, HUL, Apollo Hospitals, Titan Company and TCS were the top losers during the trade. Except for IT and FMCG, on the sectoral front, all other sectoral indices ended in the green territory. During the trading session today, the BSE Midcap index rose 2 per cent and the small-cap index was up 1.7 per cent. (ANI)
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