“Indian market showed optimism after recent sell-off. Lower than expected US PCE print strengthened investor sentiment in interest rate-sensitive sectors. Broad-based buying was seen, with the metals sector seeing an anticipated cut in steel import taxes. The growth was particularly beneficial,” said Vinod Nair, head of research at Geojit Financial Services. Nair said despite positive market sentiment, the short-term outlook is expected to remain sideways due to lack of new catalysts and impact of festive season and holidays.
In the Nifty50 pack, JSW Steel, ITC, Hindalco Industries, IndusInd Bank and Trent were the top gainers. Hero MotoCorp, Maruti Suzuki, Nestle India, HCL Technologies and Bajaj Finserv were the biggest laggards. Among sectoral indices, Bank, FMCG, Metal, Oil & Gas, Energy and Realty were up 0.5-1 per cent, while the Media index fell 0.4 per cent. Broader midcap and smallcap indices remained subdued, almost flat.
“This pause is typical, driven by oversold positions in index heavyweights. Participants are advised to maintain a cautious stance with a negative bias on the index until clear signs of a rebound are seen. However, individual stocks continue to provide opportunities on both sides. We reiterate our preference for the pharma and healthcare sectors for the long term, while other sectors are likely to see mixed trading trends,” said Ajit Mishra – Senior Vice President, Research, Religare Broking Ltd.
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