Indian Stock Market Rises Despite US Downturn
On Monday, Indian stock indices saw a significant rise, defying a sharp downturn in the US markets. This was attributed to the inherent strength in domestic market fundamentals and continued buying by foreign portfolio investors (FPIs).
Market Performance
The Sensex closed at 81,559.54 points, up 375.61 points or 0.46%, while the Nifty closed at 24,936.40 points, up 84.25 points or 0.34%. Strong buying in banking, FMCG, and private banks supported the domestic stocks.
Expert Opinions
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, mentioned, “Two factors are likely to weigh on markets: one, the outcome of the US presidential elections and two, the Fed decision on rate cut. Investors may wait and watch for clarity on these crucial developments. Meanwhile, weakness in the market can be used to slowly accumulate high-quality largecaps and defensives like pharmaceuticals.”
Ajit Mishra, SVP, Research at Religare Broking Ltd., added, “A lot will depend on the performance of global markets, particularly the US, given the lack of major domestic triggers. We advise maintaining balanced positions on both sides, with an emphasis on risk management in the interim.”
Inflation Data
Going into this week, the markets will monitor both retail and wholesale inflation data for fresh cues. Retail inflation in India softened drastically in July to 3.54%, according to data from the Ministry of Statistics and Programme Implementation. The Reserve Bank of India (RBI) has raised the repo rate by 250 basis points cumulatively since May 2022 to combat inflation.
Doubts Revealed
Stock Market -: A stock market is a place where people buy and sell shares of companies. It’s like a big marketplace for company ownership.
Sensex -: Sensex is a stock market index in India that shows the performance of 30 major companies listed on the Bombay Stock Exchange (BSE).
Nifty -: Nifty is another stock market index in India, but it tracks the performance of 50 major companies listed on the National Stock Exchange (NSE).
US Downturn -: A US downturn means that the stock markets in the United States are not doing well, and prices of shares are going down.
Banking -: Banking refers to the business of banks, which includes services like saving money, giving loans, and managing finances.
FMCG -: FMCG stands for Fast-Moving Consumer Goods. These are products that sell quickly and are used by people every day, like soap, toothpaste, and snacks.
Private Banks -: Private banks are banks that are owned by private individuals or companies, not by the government.
VK Vijayakumar -: VK Vijayakumar is a financial expert from Geojit Financial Services, a company that helps people invest their money.
Ajit Mishra -: Ajit Mishra is a financial expert from Religare Broking Ltd., another company that helps people with investments.
Retail Inflation -: Retail inflation is the rate at which the prices of goods and services bought by consumers increase over time.
Geojit Financial Services -: Geojit Financial Services is a company in India that provides financial services like investment advice and stock trading.
Religare Broking Ltd. -: Religare Broking Ltd. is another company in India that helps people buy and sell stocks and offers financial advice.
