Source : INDIA TODAY NEWS
Domestic stock markets opened higher on Monday, recovering from last week’s decline, with benchmark indices gaining in early trade. The BSE Sensex was up 312.44 points, or 0.42%, at 75,088.18 at 9:20 am, while the NSE Nifty50 rose 86.20 points, or 0.37%, to 23,633.95.
Shares of InterGlobe Aviation, the parent company of IndiGo, jumped around 5% in early trade, emerging as one of the top gainers on the benchmarks. Buying interest was also seen across select banking, auto and capital goods stocks.
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Market experts said investors are closely watching global crude oil prices, domestic auto sales data and the upcoming RBI monetary policy decision for further direction.
According to Dr V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, there are no major triggers for the market at the start of the week despite continued uncertainty over a possible US-Iran deal and Brent crude trading near $93 a barrel.
He noted that a key trend since the start of the West Asia conflict in late February has been the strong performance of the broader market, supported by better-than-expected March quarter earnings. Mid-cap and small-cap stocks have continued to outperform, driven by expectations of strong corporate results, while foreign portfolio investors have remained sellers in large-cap stocks.
This has widened the valuation gap between large-cap stocks and the broader market. Vijayakumar said large-cap stocks are now fairly valued, with banking stocks appearing particularly attractive from a valuation perspective. However, he cautioned that gains in the segment may take time and could test investors’ patience.
He also pointed out that the sharp 1.5% fall in the Sensex and Nifty on Friday was largely linked to MSCI index rebalancing and the resulting passive fund outflows, rather than a change in the underlying market trend.
Investors will now track May auto sales figures, which could influence stock-specific movement in the sector. Market participants are also awaiting the RBI’s monetary policy announcement on June 5, with commentary on economic growth and inflation expected to shape sentiment through the week.
Overall, the market started the week on a positive note, supported by selective buying and hopes that domestic fundamentals will continue to remain resilient despite global uncertainties.
– Ends
SOURCE :- TIMES OF INDIA
