New Delhi, September 6
Indian stock indices traded steady Wednesday early trade, after they were in the green for the past three-to-four sessions. As it seems, investors possibly are looking for mild profit booking.
Sensex and Nifty were at 65,772.15 points and 19,573.65 points, respectively, at the time of filing this report.
“The spike in crude (Brent at USD 90 per barrel) is a major macro concern. In this scenario, the FIIs are likely to continue selling in the cash market,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Indian stock markets had managed to break a five-week losing streak, registering nearly one percent gain last week. A significant factor contributing to the improved investor sentiment is India’s firm GDP growth rate of 7.8 percent in the first quarter (April-June) of 2023-24, which makes India the fastest-growing major economy.
Moreover, foreign portfolio investors (FPIs) continued to be net buyers in Indian stock markets for the sixth consecutive month until August. This sustained interest from FPIs, with equity assets worth Rs 1.35 lakh crore bought cumulatively in 2023, is a positive indicator for the markets.
In a bullish outlook for Indian stock markets, Morgan Stanley has said it expects the key indices to rise 10 percent by the time the country votes in the next general elections in the summer of 2024.
“We expect the market to rise 10 percent to the election date in anticipation of continuity and a majority. Post-election, we see the potential for the market to swing in a wide range, depending on the outcome,” the multinational investment bank said in the latest report, titled ‘One Billion Voters: Will They Please the Market?’.
As it stands, voting in the world’s biggest democracy with about one billion voters will likely commence in April 2024.