Mumbai, November 9 (IANS). This week, the US election returned Donald Trump to power and the Fed cut interest rates for the second consecutive time in the current year, while increasing selling pressure from foreign institutional investors (FIIs) led to consolidation in the Indian stock market. Continued. According to experts, this improvement is especially pronounced in highly valued sectors.
However, despite heavy selling by FIIs, the stock market is resilient as valuations are reasonable and every selloff is being absorbed by domestic institutional investors (DIIs) and individual investors, especially high-net-worth individuals (HNIs).
DIIs have been strong buyers which absorbed the selling and cushioned the decline. They invested more than Rs 1 lakh crore in Indian equities in October, leading the stock market to outperform its global counterparts.
On the other hand, the recent pick-up in India’s domestic manufacturing activity is a positive sign.
“Government spending is expected to pick back up after the general elections are over this year, so corporate earnings could improve in the second half of FY2025,” market watchers said.
Consumption is likely to pick up in the third quarter due to the festive season, which will boost market sentiment and help in an uptick in the near term.
Globally, Trump’s withdrawal has reduced political uncertainty, providing relief to global markets. The Fed’s interest rate cut of 25 basis points has also helped.
After massive selling of Rs 113,858 crore by FIIs in October, FIIs have sold equities worth Rs 19,849 crore in the cash market so far this month.
Experts said the selling trend by FIIs is likely to continue in the near future unless data indicates the possibility of a trend reversal.
The Indian stock market closed flat on Friday. The Sensex fell 55.47 points or 0.07 per cent to 79,486.32. Nifty fell 51.15 points or 0.21 per cent to 24,148.20.
According to Deepak Jasani, Head of Retail Research at HDFC Securities, Nifty continued its decline for the second session after moving in a narrow range.
He said, “The short-term trend of Nifty remains volatile and this consolidation is likely to continue with a bearish bias in the near future. The next lower support will be seen around 23,800 levels. Immediate resistance placed at 24,537 levels.” Is.”
–IANS
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