INSUBCONTINENT EXCLUSIVE:
The equity markets on Monday started Samvat 2079 on an upbeat note with the benchmark indices racking up a gain of nearly 1 per cent, the
biggest gain in Muhurat trading in nearly 14 years.
The S-P BSE Sensex ended the ceremonial one-hour trading session at 59,832, with a gain
of 525 points, or 0.9 per cent, while the Nifty 50 index ended at 17,731, up 154 points, or 0.9 per cent.
During the Muhurat trading
session on October 28, 2008, the benchmark indices had climbed nearly 6 per cent
This was the fifth straight year when the market ended with gains on Muhurat day.
Buying shares on Muhurat day is considered auspicious by
several retail participants
Most investors do ceremonial purchases
Institutional investors and brokers trade to price in global cues or key developments.
The US markets opened higher on Monday with the Dow
Jones rising 1 per cent amid a retreat in the 10-year Treasury yield
After topping a 14-year high of 4.33 per cent last week, the yield on the 10-year fell below 4.20 per cent
A fall in bond prices is positive for the equities market.
During Samvat 2078, the Sensex and the Nifty had dropped over 1 per cent amid a
inflation.
With markets starting the new Hindu calendar year on a positive note, many are hopeful the returns during Samvat 2079 will be
positive.
However, analysts say investors may have to brace themselves for volatility over the next three-six months because the Fed and
recession, sustained monetary tightening, and rising geopolitical tensions are factors that could weigh on the performance of the markets
On the other hand, optimism that the worst of inflation is over and an expected pickup in the domestic economy, coupled with hopes of
This trend can be expected to continue
However, investors should be cautious since there are major challenges ahead, particularly rising interest rates and the unknown trajectory
counterparts by more than 10 percentage points last Samvat, even as overseas investors pulled out close to Rs 2 trillion from domestic
stocks.
The enthusiastic participation of local investors mitigated the negative effects as other markets faltered
A lack of adequate returns in other asset classes is leading to the increased participation of local investors, both directly and through
mutual funds, say experts.
However, it means to be seen if the pace of domestic buying continues, particularly if the markets continue to
stocks led the advance, with the Bank Nifty index climbing 1.3 per cent
ICICI Bank, HDFC Bank and HDFC were the leading contributors to Sensex gains
On the BSE, 2,662 stocks advanced and 744 ended with losses.
