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Informist, Thursday, Oct. 31, 2024

By Alina Geogy

MUMBAI – Benchmark indices are seen range-bound Friday when exchanges will conduct a one-hour Diwali Muhurat trading session. The special trading session will begin at 1800 IST and end at 1900 IST, while the pre-open session will start at 1745 IST. The indices may consolidate amid a lack of corporate earnings and other major triggers, analysts said.

The indices will be flattish to slightly positive during the special trading session, a head of research at a domestic broking house said. Buying can be expected in banking and mid-cap pharmaceutical stocks, as these segments have posted healthy earnings for the September quarter, the head of research said.

Analysts expect the Nifty 50 index to test the level of 24000 points over the next few days due to the overall weakness in the market. On Wednesday, the Nifty 50 closed 0.6% lower at 24205.35 points and the BSE Sensex closed 0.7% lower at 79389.06 points. The support for the Nifty 50 index is seen at 24200-24150 points, while the resistance is pegged at 24500-24550 points.

The ongoing correction in the market may weigh on the indices, analysts said. Investors could be discouraged by the record outflows by foreign institutional investors this month and weaker-than-expected earnings for the September quarter, they said. Foreign portfolio investors have net sold shares worth INR 940 billion in the domestic market in October.

Amid a lack of major domestic triggers, investors will turn to global markets and key economic data from the US. They will assess the weekly unemployment insurance claims report, released after market hours on Thursday.

Some automakers are expected to release their sales data for October on Friday and over the weekend. In October, the two-wheeler and tractor segments are expected to have had positive momentum in demand, while the passenger vehicles and commercial vehicle segments are likely to have seen moderate demand, according to analysts. A better monsoon is helping drive positive sentiment in rural regions, though the sustainability of this demand remains to be seen, Motilal Oswal Financial Services said in a report.

Though the two-wheeler segment is expected to outperform other categories during the festive season, the growth is gradually moderating, Motilal Oswal said. The brokerage firm said it continues to prefer passenger vehicles over two-wheelers owing to this and given the relative premium valuation for the two-wheeler segment. Its top picks in this sector are Maruti Suzuki India, Hyundai Motor India, and Mahindra & Mahindra.

Market watchers also eagerly await the presidential elections in the US next week. Analysts said a victory for Donald Trump in the elections could benefit companies based in the US. Trump recently proposed a cut in corporate tax for companies that manufacture in the US. End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Saji George Titus

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