Break on decline in stock market, know how will be the coming week?
Finally, the indian stock market has now taken a break after the decline that continued for the last three months. In the last week, the stock market recovered and the Sensex-Nifty made a strong comeback and closed with a gain of about two percent. The market improved due to favorable global and domestic cues, which has increased investor confidence. Nifty closed at 22,552.50, while the Sensex closed at 74,332.58, reflecting a significant jump.
Ajit Mishra, Senior Vice President, Research, Religare Broking Ltd, said, "Global sentiment improved after reports of delay in US tariffs and the possibility of further negotiations, which has helped stabilize the financial markets. In addition, the weak dollar and fall in crude oil prices have boosted investor confidence. " On the domestic front, the decision by the reserve bank of india (RBI) to inject additional liquidity into the system has increased the positive momentum. "These factors led to a broad-based rally across sectors, with metals, energy and pharmaceutical stocks being the biggest gainers," Mishra said.
Krishna Appala of CapitalMind Research said the market's strength was driven by a broad-based recovery, with Nifty50 stabilising near reasonable valuations, while mid- and small-caps saw continued buying after recent corrections. "Large caps look well placed, with Nifty50's P/E below 20x, which is in line with historical norms," Appala said. corporate balance sheets remain strong and 10-12 per cent annual earnings growth is expected to provide stability." Sustaining this momentum depends on earnings recovery and broader market sentiment.
Experts said that while large caps appear to be in a better position, the broader market may consolidate until earnings growth picks up. The upcoming trading week will be short due to holidays. Experts said tariff talks, geopolitical tensions and their impact on the US dollar and crude oil prices will have an impact. They said that given the current scenario, investors are advised to maintain a positive but cautious stance.
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