Shillong, November 3: The Indian market is experiencing a resurgence, with a notable decrease in investor anxiety, according to Vinod Nair, Head of Research at Geojit Financial Services.
As per IANS, this positive sentiment is driven by several factors, including strong global indicators, stable macroeconomic data, and robust domestic corporate earnings. Additionally, indications that the US Federal Reserve is unlikely to raise interest rates in the near future, along with a modest decline in oil prices, are further contributing to this optimism.
On Friday, the Nifty 50 closed at 19,230.60, marking a 0.51% increase of 97 points, while the Sensex closed at 64,363.78, up 0.44% with a gain of 283 points.
The ongoing Q2 results are revealing healthy growth in Indian operating margins, leading to a substantial increase in earnings. Large-cap companies are reporting a robust 40% growth in Profit After Tax (PAT) on a Year-on-Year (YoY) basis during the earnings season. Furthermore, the moderation of global inflation, along with consistent domestic and external demand, is bolstering the corporate earnings outlook for the second half of the year.
Most sectors closed positively on Friday, with the Nifty reality sector standing out with a 2.54% gain, as noted by Vaibhav Vidwani, Research Analyst at Bonanza Portfolio.
In contrast, the Bank of England, as expected, maintained its benchmark rate, but it foresees no growth and an increase in unemployment in the coming year.
Key gainers on the Nifty included Apollo Hospitals, Adani Ports, Eicher Motors, LTIMindtree, and Titan Company, while Bajaj Finserv, Dr. Reddy’s Laboratories, SBI Life Insurance, IndusInd Bank, and Tata Steel were among the losers.
Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, suggested that Nifty encountered resistance around 19,250-19,300 levels after a gap-up opening. He noted strong support for Nifty at the 19,200 level due to maximum put writing, and the 19,300 call option had the maximum open interest. To maintain a bullish outlook on Nifty, it would need to close above its critical 100-day moving average positioned at 19,300.