Indian Stock Market Rebounds as BJP Leads in Haryana Elections
On Tuesday, Indian stock indices ended a six-day losing streak, closing in the green. This recovery was driven by buying at lower levels and the BJP’s anticipated third consecutive term in Haryana. The Sensex rose by 584.81 points to 81,634.81, and the Nifty increased by 217.40 points to 25,013.15. Most sectoral indices saw gains, with Nifty media, auto, pharma, and oil and gas leading the way, except for Nifty metal.
Ajit Mishra, SVP of Research at Religare Broking Ltd, advised traders to use this recovery to lighten positions and be selective with long trades, favoring IT and pharma stocks for their resilience. Previously, Sensex and Nifty had experienced six consecutive sessions of losses, attributed to a consolidation after a bull run and tensions in the Middle East following an attack on Israel by Iran.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, recommended accumulating high-quality blue-chip stocks, particularly in financials and IT. The US Federal Reserve’s recent interest rate cut by 50 basis points had supported Indian stocks, encouraging capital inflow to India. Foreign portfolio investments remained positive for the fourth month through September.
Investors are now looking to the RBI’s monetary policy outcome and Q2 earnings of Indian companies for further cues. The RBI has kept the repo rate unchanged at 6.5% for nine meetings. Vikram Kasat, Head of Advisory at PL Capital – Prabhudas Lilladher, noted that the festive season could boost consumer spending, benefiting sectors like retail and gold, while geopolitical and economic factors will influence market dynamics.
Doubts Revealed
BJP -: BJP stands for Bharatiya Janata Party, which is one of the major political parties in India. It is currently the ruling party in the country.
Haryana Elections -: Haryana is a state in India, and elections are held to choose leaders who will govern the state. The BJP leading in these elections means they are likely to win and form the government there.
Sensex -: Sensex is a stock market index in India that tracks the performance of 30 well-established companies listed on the Bombay Stock Exchange (BSE). It helps investors understand how the stock market is doing.
Nifty -: Nifty is another stock market index in India, similar to Sensex, but it tracks 50 companies listed on the National Stock Exchange (NSE). It gives an idea of the overall market performance.
RBI -: RBI stands for Reserve Bank of India, which is the central bank of the country. It manages the money supply and interest rates to ensure economic stability.
Q2 earnings -: Q2 earnings refer to the financial results of companies for the second quarter of the financial year. It shows how much profit or loss a company made during that period.
Middle East tensions -: Middle East tensions refer to conflicts or political issues in the Middle East region, which can affect global markets, including India’s, due to changes in oil prices and investor confidence.
Market consolidation -: Market consolidation means a period when stock prices don’t move much and stay within a certain range. It often happens after big price changes as the market stabilizes.