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Sensex, Nifty rebound; investors eye US elections

November 5, 2024 5:33 PM IST

Nifty-Sensex

The Indian stock market gained on Tuesday after witnessing significant volatility during the trading session. The Sensex rose by 694.39 points, or 0.88% to end at 79,476.63 points, while Nifty 50 index gained 217.95 points, or 0.91% to close at 24,213.30.

Market data indicated that sectors such as Nifty Bank, Financial Services, Metal, PSU Bank, and Private Bank were among the top performers. Volatility marked the trading session, with indices fluctuating sharply due to ongoing foreign portfolio investor (FPI) selling. During one point in the day, the Sensex dropped around 1,500 points before recovering to close on a positive note.

Foreign portfolio investors (FPIs) sold stocks worth Rs 94,017 crore in India through October, suppressing the stock market’s overall performance. In the process, they became net sellers in India, after having remained buyers for four months. Important to mention is that the total stocks they sold in India in October were the highest-ever in a month, National Securities Depository Limited data showed.

The S&P 500, by contrast, has risen 20.45% year-to-date, while the Nifty trails behind with a 10.36% increase. According to Geojit Financial Services’ Chief Investment Strategist, V.K. Vijayakumar, domestic concerns, including downgraded earnings expectations, are weighing on investor sentiment. He highlighted that approximately two-thirds of Nifty 50 companies missed Q2 earnings estimates, resulting in reduced FY25 earnings forecasts from 15% to under 10%.

“With this kind of earnings downgrade it would be difficult to sustain the current valuation. This is the rationale of the relentless FII selling which might continue for some more time,” said Vijayakumar.

(ANI)

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Last updated on: 28th November 2024