D-Street almost recoups poll surprise losses
India's equity indices surged nearly 1% on Thursday, with markets expected to make fresh highs in the next few trading sessions despite foreign portfolio investors selling shares.
indices surged nearly 1% on Thursday, building on the previous trading session's rebound ahead of the 's first monetary policy review on Friday after the general election results. Analysts said the nervousness in the around the election verdict has receded with the BJP-led set to form the government. gained 0.89%, or 201 points, to close at 22,821. gained 0.93%, or 692 points, to close at 75,074. Both the indices have gained about 4.3% each in two days, recouping the majority of the over 5% losses on the day of the election results Tuesday.led the gains with advancing 4.4% followed by gaining 3.8%. , , Wipro and LTI Mindtree gained 2-3%. The Bank Nifty gained 0.5% ahead of the meeting when it is expected to keep rates unchanged
"The downside looks limited for the markets currently and the previous highs remain a key hurdle for the market as it is expected to carry the momentum and make fresh highs in the next few trading sessions," said Manish Chowdhury, head of research at StoxBox.
The Midcap 150 index and Smallcap 250 index advanced 2.18% and 3.25%, respectively, on Thursday. Out of the 3,945 stocks traded on the BSE, 3,009 rose, while 834.
"Now that the is expected to continue as a coalition government, the dip is being used as a buying opportunity," said Ruchit Jain, lead research analyst at 5paisa. "If markets cross 22,900-23,000 levels, then some short covering could be triggered, and markets could move up further. However, if that doesn't happen, markets could remain rangebound."
Foreign portfolio investors (FPIs) net sold shares worth ₹6,868 crore on Thursday, while Domestic Institutional investors (DIIs) were buyers to the tune of ₹3,718 crore.
Source: Stocks-Markets-Economic Times
