It’s a good Friday for the markets. The benchmar indicesm Nifty and the Sensex staged a strong recovery the Nifty moved well above its 200-day moving average around 23,500. This rally was led by blue-chips, Reliance Industries and IT companies and the Sensex jumped almost 2000 points intra-day. The Adani Group companies have also seen significant recovery in intra-day trade after the sharp cut on the back of the US bribery charges against Gautam Adani and 7 others.
Markets to watch out for election results
All eyes are now on the election results on Saturday, November 23. The probability of a BJP win in the Assembly elections, as indicated by the Exit Polls is what’s being factored in by the markets.
Prashanth Tapse, Senior VP (Research), Mehta Equities outlined that, “Markets witnessed a major relief rally on across-the-board buying as benchmark indices surged over 2% ahead of the poll results in two states on Saturday. The exit polls hinting at BJP winning in both the states seemed to have boosted investors’ sentiment in a big way and shrugged off the Adani controversy. Also, many of the stocks are now looking relatively attractive, especially after the relentless selloff over past few weeks due to dismal Q2 earnings and unabated FII fund outflows, and hence the reversal of trend.”
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Long-term growth, earnings key triggers
According to experts, geopolitical situation along with earnings can provide the next trigger for the markets. Krishna Appala, Sr. Research Analyst, Capitalmind Research explained that, “While valuations in some sectors have seen meaningful corrections, they may still not warrant aggressive buying across the board. However, opportunities exist in specific sectors and broader themes that hold long-term potential, particularly in areas that have experienced significant price adjustments but remain fundamentally strong. India’s long-term growth story remains compelling. Investors should focus on sectors aligned with structural themes such as urbanization, infrastructure, and consumption growth. Strategic portfolio adjustments, disciplined investing, and a long-term perspective are critical to navigating the current environment.”
Ajit Mishra – SVP,
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