S&P BSE Sensex finished 0.28% higher at 62,681.84, while the Nifty 50 advanced 0.30% to 18,618.05. The trend-driven Indian stock indexes reached new all-time highs on Tuesday, with the Sensex and Nifty both reaching new all-time highs during the day, at 62,887.40 and 18,678.10, respectively. Today's trading saw a surge in fast-moving consumer goods (FMCG) and metal stocks, assisting the Sensex to set a new high for the fourth day in a row. The Nifty50 increased by 0.3%, while the Nifty Mid Cap and Nifty Small Cap fell by 0.5% and 0.6%, respectively.Nifty FMCG was the top gainer, up 1.9%, followed by Nifty Metal and Nifty Pharma, up 1% and 0.7%, respectively, assisting major sectoral indices to close on a positive note.
"Indian Indices have recorded high yet again today, the Sensex rose to a record high for the fourth straight day while the nifty index rose for the second straight day aided by an uptick in fast-moving consumer goods (FMCG) and metal stocks, tracking Asian peers that rebounded after China's decision to support property developers to boost demand," said Naveen Kulkarni, Chief Investment Officer, Axis Securities.
“Indian markets closed in positive, even after witnessing some pullback in the second half of trade, after reaching record highs. Sectors that did well include FMCG, where the market is now pricing in lower pressure on gross margins as packaging and agri prices are expected to cool off from highs of Q2FY23. Metals also did well after Chinese regulators eased financing for property developers, a move expected to boost demand for metals. We expect Nifty50 to remain range bound in the near term but expect the broad markets to outperform as we believe that small and midcaps can catch up some part of their recent underperformance to large caps. Investments in the current environment should be stock specific, where investors should focus on good quality stocks with strong business models available at reasonable valuations," said Naveen Kulkarni.
Given the escalating unrest in China over the imposition of severe lockdowns, which may harm the world's sluggish economy, "While the winning streak continued and key benchmarks scaled new highs, investors traded with caution in a slightly volatile market," said Shrikant chouhan, Head of Equity Research (Retail), Kotak Securities Ltd. Markets are concerned about growing protests in China over the imposition of strict lockdowns, which they fear will harm the already slowing global economy. If the situation does not improve, the market may suffer."
He further added that “But since India is in a slightly better position compared to other major economies, investors are willing to bet big on us. Technically, the market is consistently holding higher high and higher low formation which is broadly positive. Hence the support has now shifted to 18550 from 18450. As long as the index is trading above 18550, the uptrend wave is likely to continue. Above which, the market could move up to 18750-18800."
"Domestic equities closed slightly higher despite negative global cues," said Mr. Mitul Shah, Head of Research at Reliance Securities. The Nifty gained 0.3%, while the broader markets underperformed the main indices, falling 0.5% and 0.6%, respectively. The vast majority of sectoral indices finished in the green. Nifty FMCG gained the most, gaining 1.9%, followed by Nifty Metal and Nifty Pharma, which gained 1% and 0.7%, respectively. The primary laggards were Nifty Reality (-0.3%) and Nifty Auto (-0.2%). Meanwhile, British Prime Minister Rishi Sunak has reaffirmed the UK's commitment to a free trade agreement with India. He predicted that by 2050, the Indo-Pacific will account for more than half of global growth, compared to only a quarter from Europe and North America combined."
“The U.S. equities fell as widespread protests across China against the country’s zero-Covid policy sparked worries for the outlook of global growth. The S&P 500 fell 1.1% while Dow Jones and Nasdaq lost 1% each. The yield on the 10-year U.S. Treasury note rose to 3.703%, from 3.701% on Friday. Moreover, comments from New York Fed President indicated that interest rates could remain higher if inflationary pressure persists. The market is awaiting the Labor Department’s November jobs data to be released on Friday, which will likely to influence heavily into the Fed’s December interest-rate decision," said Mr. Mitul Shah
"The recent labour data and relatively lower inflation print will reinforce expectations for a smaller 50 basis point Fed rate hike on December 14 and possibly signal a further slowing of rate increases early next year." The buildup to the Budget exercise is intensifying, with job creation and an increase in government CAPEX being the primary focus. Though the economy is working hard to overcome the challenges it faces, fast-changing geopolitics is casting a long shadow. We anticipate a recovery in the coming quarters, driven by lower commodity prices and monetary easing by central banks, which will likely boost demand in the future.The movement of the rupee, FII flow, and crude oil prices will dictate trends in the short term, while volatility is likely to persist due to the never-ending Russia-Ukraine crisis and new COVID cases in China," Mr. Mitul Shah said.
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