During Friday’s muhurat trading, traditionally seen as an auspicious time for investment in India, investors exhibited positive sentiment, contributing to early signs of recovery in Indian benchmark indices.
This uplift aligned with the festive spirit and was supported by healthy inflows from domestic institutional investors and a notable decline in oil prices.
However, lingering bearish attitudes, fueled by concerns over tepid corporate outlooks and potential earnings downgrades, tempered this initial positivity despite the recent market downturn.
Market Correction May Reverse By January: Vikas Gupta
Vikas Gupta, CEO of Omniscience Capital and smallcase Manager, suggested that the current market correction might be on the verge of reversal.
“Possibly, somewhere between November 15 to January 15, the markets should start stabilising and demonstrate a definite trend, most likely positive,” he noted.
At the close of trading on Friday, the BSE Sensex climbed 335 points, a rise of 0.42%, closing at 79,724, while the Nifty saw a gain of 99 points, or 0.41%, ending at 24,304.
The overall market performance in October has been lackluster, influenced largely by uncertainties surrounding the upcoming US elections.
Gupta further stated, “The second factor would be the FII tax-loss trade in December to book losses for the year. Finally, the January effect, which is a positive return for the markets in that month following the loss-selling in December.”
In terms of sector performance, experts indicated that the banking sector, particularly Public Sector Undertakings (PSUs), presents long-term investment opportunities.
Private banks are also trading at notable discounts relative to their intrinsic values.
Additionally, investors see the power sector—especially select PSUs—and the IT sector as attractive investment avenues for the long term.
Experts further asserted that a shift in FII sentiment will likely hinge on improved domestic corporate earnings and achieving fair market valuations.
Emerging markets, including India, are currently undergoing a phase of consolidation ahead of the US presidential elections and the forthcoming Federal Open Market Committee (FOMC) meeting, which will decide on interest rates.
As the festive season continues to unfold, all eyes remain on how these developments will shape market trends in the coming weeks.
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