Indian equity benchmarks traded in positive territory on Monday, supported by fresh foreign fund inflows and a rally in US markets. Both benchmark BSE Sensex and broader NSE Nifty advanced by nearly a per cent, each. Broader indices (mid- and small-caps) also traded higher. A strong trend across Asian markets also added to the upbeat sentiment in equities.
Investor wealth, as suggested by the BSE market capitalisation (m-cap), rose by Rs 3.38 lakh crore to Rs 444.01 lakh crore today compared with a valuation of Rs 440.63 lakh crore recorded during the previous session.
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said, After staying in a downtrend in the recent past, the market witnessed a decent uptick today. Asian shares also supported today’s upward run. We can see some renewed buying interest around 24,500 levels. The market is slowly trying to digest the tariffs news.”
VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said, “Geopolitical developments will be influencing the market trend this week more than other factors. The market will be focussed on the outcome of the Trump-Putin talks in Alaska. If the talks result in an end to the Russia-Ukraine war, that would be a major positive development. US sanctions on Russia may be withdrawn and consequently, the penal tariff of 25% imposed on India for buying oil from Russia also may be reconsidered. If this happens, the oversold market will stage a smart rebound. Investors will have to wait and watch for the developments.
Vijayakumar also said, “India has been underperforming other markets significantly in the last six weeks. Nifty is down 7.6% from the September 2024 record high. Even though a sharp short-covering rally may happen on positive news, sustained rally will happen only fundamental support on the earnings front. This can happen from Q3 onwards. Now, safety is in fairly-valued largecaps.”
Technical view
“The Nifty has now endured five consecutive weeks of declines, a pattern that has played out only 13 times in the last 18 years. While the statistical odds favour a relief rally, gains have historically been modest after milder declines. Traders may see near-term opportunities, but sustained upside will likely depend on supportive macro cues,” said Apurva Sheth, Head of Market Perspectives & Research, SAMCO Securities.
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