Indian markets expected to maintain positive bias despite potential profit booking
The Nifty 50 and Sensex recorded significant gains last week, driven by foreign inflows and falling oil prices, according to Moneycontrol.
Indian equity markets saw a rally of more than 8 per cent in the extended trading week ended November 8. The Nifty 50 rose 1,933 points or 8.39 per cent to close at 24,986, while the BSE Sensex climbed 6,540 points or 8.78 per cent to end at 80,999, reported Moneycontrol.
The rally was supported by foreign investor interest, a strengthening rupee, and a decline in oil prices to below $100 a barrel. The outcome of the US midterm elections also raised hopes for reduced tensions in the Iran conflict and a softer stance on tariffs.
Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services, said Indian equities are likely to stay positive in the short term due to robust domestic fundamentals, currency strength, and steady foreign inflows.
The upcoming holiday-shortened week will focus on India's inflation data and the remaining September-quarter earnings from over 1,600 companies, including Eicher Motors and Grasim Industries. Global triggers include US inflation and Producer Price Index (PPI) data, as well as China's monthly inflation and vehicle sales.
Vinod Nair, Head of Research at Geojit Investments, noted that while the near-term outlook is constructive, intermittent profit booking may occur after such a sharp rise. He advised investors to be selective and focus on large-cap stocks with clear earnings visibility.
Kaynat Chainwala of Kotak Neo said investors will also monitor how a divided US government might impact fiscal and tariff policies, particularly regarding AI and copper, and whether technology stocks can stabilise.
