Indian stock market rallies on weak US dollar and strong quarterly earnings by big companies like ICICI Bank, Axis Bank, Bajaj Auto, Maruti Suzuki, and Nestle. Sensex and Nifty expected to breach previous swing highs, while banking, auto, and capital goods segments are expected to outshine others.
In a world where economies are crumbling like cookies, India’s stock market seems to be the metaphorical crunchy biscuit that refuses to crumble. Who needs a vaccine when you’ve got ICICI Bank and Bajaj Auto on your side, right? So grab a cup of chai and let’s raise a toast to the rise of the Indian stock market.
Now, I’m no mathematician but when the NSE Nifty gains 407 points, which is roughly a 2.31% increase, and the BSE Sensex goes up over 1,400 points or 2.40%, it tells me that something’s going right. And that’s precisely what happened, my friends, in the last week. I mean, it’s hard to ignore the fact that the Nifty Bank index shot up 791 points or 1.87% and closed at a whopping $592.13 (43,233 INR), don’t you think?
The experts tell us that this stock market uptrend has been fueled by a weak US dollar, which has lured those foreign institutional investors (FIIs) back into the warm, welcoming arms of the Indian equity markets. Add to that strong quarterly earnings by big companies like ICICI Bank, Axis Bank, Bajaj Auto, Maruti Suzuki, and Nestle, and you’ve got yourself a near-perfect recipe for a stock market rally. Of course, it’s not just the weak dollar causing a fuss; the US economy’s looming recession is making banking and auto companies look rather attractive to foreign and domestic investors alike.
In layman’s terms, or as Anuj Gupta of IIFL Securities so eloquently puts it, the Sensex has formed a “head and shoulder pattern” which signals a further uptrend. So, my dear budding investors, brace yourselves for the 30-stock index to climb up to $855.65 (62,500 INR) in the next month. Similarly, the Nifty 50 index has broken out at $246.60 (18,000 INR) and is expected to breach its previous swing high of $249.33 (18,200 INR), potentially reaching up to $257.20 (18,800 INR) in the next month.
Now, you might be asking yourself why Sensex and Nifty outperformed Nifty Bank this past week. Well, it’s not every day that I get to say this, but Bank Nifty was the first to breach its previous swing high of $586.51 (42,820 INR). But don’t worry, Sensex and Nifty soon caught up and outperformed Nifty Bank. All three indices are predicted to remain in an uptrend, and experts advise buying on dips for positional investors, as the Nifty now has strong support at $239.87 (17,500 INR).
If you’re thinking about which sectors to fuel the Indian stock market rally next week, look no further. According to Ravi Singhal, CEO at GCL Broking, banking, auto, and capital goods segments are expected to outshine others. So, you may want to keep an eye on Mahindra & Mahindra (M&M) and Bajaj Auto shares in the auto segment, and consider ICICI Bank, Axis Bank, and State Bank of India (SBI) in the banking segment.
To wrap it up, it looks like the Indian stock market is on an upward trajectory that even the most pessimistic of naysayers would find difficult to deny. So, let’s enjoy this moment of economic bliss as we continue to ride the wave of success in the Indian equity market. And remember, folks, always consult certified experts before making any investment decisions.