American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

What to expect from Indian markets ahead of the Diwali festive week

by admin October 28, 2024
October 28, 2024
What to expect from Indian markets ahead of the Diwali festive week

As the festive week approaches, Indian equity markets are showing signs of recovery after five consecutive days of declines.

On Monday, the BSE Sensex surged 856 points (1.08%) to reach 80,258.63, while the Nifty50 climbed 236 points (0.98%) to 24,417 by 10:40 AM.

These gains provide some relief for investors, primarily driven by ICICI Bank, which reported stronger-than-expected profits for the September quarter due to robust loan demand.

However, it’s important to note that the Nifty50 has experienced a nearly 8% drop from its record high in late September, largely due to sustained foreign investor outflows.

Investors are redirecting funds to China, where recent stimulus measures have made the market more appealing.

Festive week: a crucial time for market sentiment

The recent downturn in the Indian markets has been exacerbated by persistent foreign selling, with foreign institutional investors (FIIs) being net sellers for the past 20 sessions.

Analysts attribute this shift to a focus on China’s economic stimulus, which has drawn investor interest away from Indian equities.

Additionally, disappointing corporate earnings have further dampened market sentiment.

With Diwali, the most auspicious festival for Hindus, just around the corner, market participants will closely monitor indicators for a potential rebound.

Sameet Chavan, Head of Research at Angel One, highlights the importance of this festive week for gauging market sentiment.

He notes that while daily charts may not reflect the full extent of the market’s challenges, weekly and monthly trends show significant distortions, suggesting further corrections could follow.

Key support levels to watch include the August lows near 23,900, with additional supports at 23,750 and 23,400.

Banking sector shines amid market volatility

In contrast to the broader market struggles, the banking sector offers a glimmer of hope.

ICICI Bank’s robust performance has exceeded profit expectations, aided by strong loan growth. HDFC Bank’s solid earnings further bolster confidence in this sector.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, notes that the flight to quality is likely to continue, with banking majors like ICICI Bank and HDFC Bank presenting a favorable risk-reward scenario for investors seeking stability during turbulent times.

Globally, the decline in crude oil prices due to recent Israeli airstrikes, which avoided key Iranian oil fields, may provide some relief for the Indian economy.

However, uncertainties surrounding the upcoming US presidential elections are likely to weigh on global sentiment, adding complexity to the market outlook.

Hardik Matalia, Derivative Analyst at Choice Broking, suggests that the Nifty could find immediate support at 24,150, with resistance levels at 24,300, 24,400, and 24,500. He emphasizes the need for a cautious approach as volatility may persist.

As we head into the Diwali festive week, investors will be keenly watching market movements for signs of recovery amid foreign outflows and mixed corporate earnings.

The performance of the banking sector, combined with global economic factors, will play a critical role in shaping the market’s trajectory in the coming days.

The post What to expect from Indian markets ahead of the Diwali festive week appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Xpeng starts construction of new plant to produce 10,000 flying cars annually
next post
Boeing to raise over $15B in capital through shares and convertible debt to boost liquidity

Related Posts

Nio stock price analysis: is this fallen angel...

October 30, 2024

WBD stock analysis: Warner Bros may surge 140%...

February 24, 2025

Italy flags risks in $2.75T crypto rally tied...

April 30, 2025

Johnson & Johnson to pay $6.5 billion to...

May 5, 2024

Here’s why the KOSPI index has plunged this...

December 20, 2024

JPMorgan and Tesla settle legal battle over stock...

November 30, 2024

Boeing ‘disappointed’ customers but is on the path...

July 24, 2024

‘People are stretched’: Average consumer now carries $6,329...

August 9, 2024

Starwood Property: STWD could reverse as risky patterns...

October 26, 2024

Will Trump let TikTok operate in US temporarily...

December 23, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • GMS stock jumps 29% on takeover interest from Home Depot, QXO, analysts raise PTs

      June 22, 2025
    • Japan’s rice price surge: what’s driving it and why it could spark a political crisis

      June 22, 2025
    • BofA raises STOXX 600 target amid resilient global growth, warns on Mideast risks

      June 22, 2025
    • Palantir co-founder: US must prevent Iranian nukes

      June 22, 2025
    • Fed governor Waller advocates for July rate cut amid tariff, labor market outlook

      June 21, 2025

    Categories

    • Business (3,199)
    • Investing (2,531)
    • Latest News (2,000)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved