Indian equity markets have experienced a positive rebound after a recent dip. Experts suggest that despite the overall positive sentiment, there are concerns about the volatility index. Hemen Kapadia, senior vice president of institutional equity at KR Choksey Stocks and Securities Pvt, expressed caution regarding India’s VIX index, which currently stands at 15.6. Ideally, he believes it should be lower, around 12 or 13.
The Sensex and Nifty, two major stock market indices in India, achieved their largest one-day gain in nearly two months. NSE Nifty 50 recorded an impressive increase of 385 points, or 1.80%, reaching 21,737.60. Similarly, the BSE Sensex rose by 1,240.90 points, or 1.76%, to close at 71,941.57.
Reliance Industries Ltd. and Adani Enterprises Ltd. emerged as the top gainers during this trading session. Kapadia predicts that if Adani Enterprises Ltd. surpasses the resistance level of 3210, its share price could reach Rs 3,700.
While the markets have shown a strong recovery, Vinit Bolinjkar, head of research at Ventura Securities Ltd., believes that the current trend favoring large-cap stocks is encouraging and indicates further potential for market growth. However, he anticipates a potential sideways movement or a profit correction due to the upcoming annual tax harvesting period.
In terms of investment recommendations, Bolinjkar suggests focusing on energy and power stocks, as well as the entire Adani pack, which performed well during Monday’s trading session.
The recent surge in the Nifty 50 can be attributed largely to investors’ optimism surrounding the upcoming interim budget. Significant allocations in key sectors such as infrastructure and energy are expected, which has further boosted market confidence. Sonam Srivastava, CEO of Wright Research and Capital Pvt, emphasizes the positive impact this anticipation has had on the market.
Overall, while the Indian stock market has shown notable resilience and strong performance, experts advise cautious optimism and strategic investment choices. The upcoming budget and potential profit corrections may influence the market’s trajectory in the coming weeks.
Frequently Asked Questions (FAQs)
Q: What is the current concern in Indian equity markets?
A: The concern in Indian equity markets is about the volatility index, specifically India’s VIX index, which experts believe should be lower than its current value of 15.6.
Q: What were the gains seen in the major stock market indices in India?
A: The NSE Nifty 50 recorded an increase of 385 points or 1.80%, reaching 21,737.60. Similarly, the BSE Sensex rose by 1,240.90 points or 1.76%, closing at 71,941.57.
Q: Which companies were the top gainers during the trading session?
A: Reliance Industries Ltd. and Adani Enterprises Ltd. were the top gainers during the trading session.
Q: What is the predicted share price for Adani Enterprises Ltd.?
A: If Adani Enterprises Ltd. surpasses the resistance level of 3210, its share price could reach Rs 3,700.
Q: What is the current trend in the market according to Vinit Bolinjkar?
A: Vinit Bolinjkar, head of research at Ventura Securities Ltd., believes that the current trend favoring large-cap stocks is encouraging and indicates further potential for market growth.
Q: What sectors does Bolinjkar recommend focusing on for investments?
A: Bolinjkar suggests focusing on energy and power stocks, as well as the entire Adani pack, which performed well during Monday’s trading session.
Q: What is the reason behind the recent surge in the Nifty 50?
A: The recent surge in the Nifty 50 can be attributed largely to investors’ optimism surrounding the upcoming interim budget, which is expected to allocate significant funds to key sectors such as infrastructure and energy.
Q: What impact has this anticipation of the interim budget had on the market?
A: The anticipation of the interim budget has boosted market confidence and had a positive impact on the market’s performance.
Q: What advice do experts give regarding the Indian stock market?
A: Experts advise cautious optimism and strategic investment choices despite the market’s resilience and strong performance. The upcoming budget and potential profit corrections may influence the market’s trajectory in the coming weeks.
Definitions:
– Volatility Index (VIX): A measure of the market’s expectation of volatility based on the prices of options on the Nifty 50 index.
– Sensex: The stock market index of the Bombay Stock Exchange (BSE) consisting of 30 well-established and financially sound companies.
– Nifty: The stock market index of the National Stock Exchange of India (NSE) consisting of 50 large-cap stocks.
– Resistance Level: A price level at which an asset’s upward trend is expected to encounter selling pressure and result in a price decline.
Related Links:
– National Stock Exchange of India
– Bombay Stock Exchange