Shillong, November 3: According to V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the prevailing positive global sentiments could embolden the bulls in India, potentially leading to a resurgence. He points out that foreign institutional investors (FIIs) holding short positions in the market may engage in short covering, creating favorable conditions.
Vijayakumar notes that historical market trends have shown that significant upward movements often occur unexpectedly, and it seems this trend is currently playing out.
The recent decision by the Federal Reserve to keep interest rates unchanged and refrain from adopting a hawkish stance has provided confidence to investors, resulting in a strong comeback in the primary U.S. market. The S&P index, for instance, recorded a 1.9 percent increase on Thursday.
Positive earnings figures and the anticipation of stable interest rates in the short term, with expectations of a decline in the latter half of 2024, have contributed to the market’s recovery, according to Vijayakumar.
He suggests that the “buy on dips” strategy, which has proven effective in this market, is likely to remain so. High-quality large-cap companies in financials, automobiles, and capital goods are performing well, and mid-cap IT companies are also showing strength.
As of now, the BSE Sensex is up by 401 points, reaching 64,482 points, with Tata Motors experiencing a more than 2 percent increase.