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Informist, Friday, Sep 27, 2024

By Anjana Therese Antony

MUMBAI – Though investors may continue to sell their stocks to book more profits in the near term, it is likely that the short-term bias will remain bullish, with more inflows expected into large-cap stocks, analysts said. "FIIs (foreign institutional investors) are also turning increasingly optimistic, which bodes well for us," a research analyst at a domestic broking firm said. 

India's benchmark equity indices hit fresh record highs on all the five sessions this week. Today, the Nifty 50 hit an all-time high of 26277.35 points and the BSE Sensex hit a lifetime high of 85978.25 points. The 50-stock index closed 0.1% lower at 26178.95 points and the 30-stock index ended 0.3% lower at 85571.85 points. Near-term support for the index is pegged at 26000-25980 points and resistance at 26250-26300 points, according to technical and derivatives analysts at different broking firms. 

The market is now looking for new triggers as the recent US rate cut-led cheer is mostly done. Corporate earnings for the September quarter, which start by mid-October, and the Reserve Bank of India's monetary policy decision, due early next month, are likely to lend cues to investors in the short term. 

When it comes to various sectors, it is likely that information technology stocks will continue to rise more on the back of an upward revision in revenue growth guidance of their US-based peer Accenture. The US IT giant reported higher-than-expected revenue growth for the August quarter, luring investors to Indian IT stocks on expectations that these companies will also follow a similar trend for the September quarter. The interest rate cut cycle and a potential thaw in decision-making by US corporates post US elections in November could provide a fillip to demand, Nomura Global Markets Research said in its research report following Accenture's results.

The movement in crude prices will also be closely monitored next week, especially as prices have been falling amid concerns of oversupply. The recent fall in crude oil prices has led to optimism towards state-owned oil marketing companies such as Bharat Petroleum Corp, Hindustan Petroleum Corp, and Indian Oil Corp. Today, shares of BPCL hit a record high and closed a whopping 6.4% higher, something rare for a Nifty 50 constituent. IOC closed nearly 4% higher and HPCL closed 5% higher. 

The monthly sales data of automobile companies will also be closely monitored next week, with some analysts expecting robust data for two-wheeler manufacturing companies. The sales volume in September is likely to be a mixed bag, with growth in two-wheelers and tractors and a decline in the passenger vehicle and commercial vehicle segments, Nuvama Institutional Equities said in a report. "In tractors, we reckon growth due to better rural sentiment. In CVs, we anticipate a decline on a high base," it said in the report.  End

Edited by Avishek Dutta

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