Snapping two-week losses, Indian stock indices back in green

Business Friday 03/November/2023 16:08 PM
Snapping two-week losses, Indian stock indices back in green

New Delhi: Snapping two weeks of cumulative losses, Indian stock indices regained some of their lost ground. Benchmark Sensex and Nifty were 0.5 per cent higher each at the time of the closing bell Friday.

On a cumulative basis, the indices gained 1.4 per cent each over the course of the past five days through Friday.

All Nifty sectoral indices and Nifty 50 stocks were in the green today. Apollo Hospitals, Adani Ports, Eicher Motors, Titan, and LTI Mindtree were the top gainers, in a range of 2-5 per cent.

"The domestic market closed the current week on a positive note, stepping up the momentum a little further from the previous trading session, mainly on the basis of the US developments, especially based on the FOMC decision to keep the Fed Funds Rate unchanged. This resulted in an upward momentum in the US markets as also other developed markets in the last two days," said Joseph Thomas, Head of Research, Emkay Wealth Management.

"This also gives confidence to the markets that we have reached the end of a rate hike cycle and the probability of further hikes or aggressive hikes remain very low," Thomas said.

Earlier this week, the US Federal Reserve kept the key policy rate unchanged for the second straight time at 5.25-5.50 per cent, as was widely expected.

"We reiterate a cautious view on the index and suggest awaiting a decisive break above 19,400 (Nifty) for a sustained recovery else the up move would fizzle out. However, there is no shortage of stock-specific opportunities so traders should maintain their focus on stock selection," said Ajit Mishra, SVP - Technical Research, Religare Broking.

Kotak Securities in a report said it is bullish on a few select large-cap and BFSI sector stocks and advised investors to add quality stocks to their portfolio at a time when the broader market valuations are relatively rich.

Opportunities arising from market correction should be used, the brokerage said in a report 'Diwali Muhurat Picks'. It gave 'Buy' recommendations for eight stocks - Aegis Logistics, Axis Bank, Cipla, DLF, Infosys, Mahindra and Mahindra, Reliance Industries, and SRF. It sees a 10-26 per cent possible return on investments in these recommended stocks over the course of the next 12 months.

Notably, food aggregator and delivery company Zomato continued to be profitable for the second straight quarter. The company reported Rs 36 crore as net profits during the July-September, as against Rs 251 crore loss incurred in the same quarter last year.

Notably, Zomato for the first time reported quarterly profits in the April-June 2023 period.

The shares of Zomato settled as high as 9.6 per cent from its previous day closing at Rs 117.90. So far in 2023, the company's shares jumped over 95 per cent.