Stock market today: After sell off in HDFC twins share price leading to pause in stock market rally on the weekend session, Indian stocks market bounced back strongly during Monday deals as all key benchmark indices registered a sizeable gain. Most of the sectors including auto, banking, IT, Tech and power sector stocks registered handsome gains in intraday session. However, Bank Nifty index outperformed other key benchmark indices as Bank Nifty today gained over 1.50 per cent whereas Nifty and Sensex gained 1.15 and 1.22 per cent respectively.
According to stock market experts, Indian stock market is rising due to weakness in US dollar and looming economic slowdown concerns raised by the US Fed officials in recent FOMC meeting. So, FIIs are expected to buy in bulk in Indian equities, especially in auto, banking and capital goods segment. As most of the private banks, who dominate the Nifty Bank index, have declared strong Q4 results and market is expecting sustained credit growth in Indian banks. Therefore, both FIIs and DIIs are expected to pump money in banking segment. That’s why Bank Nifty index has outperformed other benchmark indices and the trend is expected to continue in short to medium term.
Why Nifty Bank index is skyrocketing?
On why bank stocks are skyrocketing, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “Due to weakness in US dollar, FIIs are fishing out money from the forex market and they are investing heavily in Indian equities. As lowering US dollar and bank crisis in the US is expected to put pressure on Indian IT companies, banking and auto stocks are expected to outperform other indices.”
Avinash Gorakshkar of Profitmart Securities went on to add that domestic driven segment is expected to fuel Indian stock market in short to medium term and hence banking, auto and capital goods segment stocks are expected to shun away with maximum of FII investment in the Indian equity market.
Highlighting the important pivots in regard to key benchmark indices of the Indian stock market, Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher said, “The support for the week is seen at 60,000/17,700 (Sensex/Nifty) while the resistance is seen at 61,800/18,400. Bank Nifty would have the weekly range of 41500-43800 levels.”
On why Bank Nifty index may continue to outperform Sensex and Nifty, Saurabh Jain, Vice President — Research at SMC Global Securities said, “Expectations of sustained credit growth and better Q4 results from frontline banking stocks have buoyed the mood of Indian stock market bulls, which includes both DIIs and FIIs. So, rally in quality private sector bank stock is expected to continue in short to medium term.”
Stocks to buy today
Saurabh Jain advised positional investors to buy ICICI Bank, HDFC Bank, Axis Bank and Kotak Mahindra Bank shares, if they are planning to add banking stocks in their portfolio.
On which auto stocks one should look at if someone wants to diversify one’s stock portfolio, Avinash Gorakshkar said that Tata Motors, Mahindra & Mahindra (M&M) and Bjaj Auto can be one of the good auto stocks to buy in current bull trend.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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