Markets bounce back after 6 days

After a bearish run for 6 days, the NSE Nifty on Friday was up by 1.13 per cent or 213 points to 19,070 in the afternoon, while the BSE Sensex was at 63,910, up by 1.21 per cent, or 762 points at 2:40 pm.

Top gainers on the BSE include Swanenergy, JPASSOCIAT, ICIL, JYOTIRES, and CREESAN, with gains ranging from 8.97 per cent to 15.56 per cent. Conversely, STLTECH, Prestige, WESTLife, MMTC, and VRLLOG experienced declines, with losses ranging from 2.88 per cent to 8.12 per cent.

Of the 3,690 stocks that were actively traded today, 2,815 stocks advanced, while 730 stocks declined and 145 stocks remained unchanged. While 95 stocks hit a 52-week high, 29 hit a 52-week low.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said after six consecutive days of losses driven by elevated bond yields in the US and geopolitical tensions in West Asia, the market appears to be oversold.

He explained, shorting in the FPI overweight segments, particularly banking and IT, contributed to the sharp market correction. Despite the challenges, the US economy has displayed surprising resilience, with Q3 GDP growth at 4.9 per cent. This suggests that the Federal Reserve is likely to maintain a hawkish stance, and a ‘higher for longer’ interest rate regime may prevail, which could impact the stock market negatively.

“On the positive side, valuations in India, which were high, have now turned fair and in sectors like banking, valuations are attractive. This is the time for cherry picking by long-term investors. History tells us that corrections triggered by geopolitical events are opportunities to buy,” says Dr. V K Vijayakumar.