Blitz Bureau
NEW DELHI: The surge in the Indian stock market on Friday helped the Indian benchmark indices end the week on a positive note. A strong 2,000-point rebound from the lows suggests that the buy-on-dips strategy is working well in the market, experts said on December 14.
“With inflation coming within the RBI’s tolerance level and an expectation of further ease in food prices on account of seasonal corrections in vegetable prices, it could build up the expectation for ease in monetary policy in February,” said Vinod Nair, Head of Research, Geojit Financial Services.
On the last trading session this week, Nifty witnessed a sharp recovery of more than 2 per cent from day’s low, rebounding from a significant dip earlier in the session, to close with gains of 220 points at 24,768 (+0.9 per cent).
Buying in FMCG, IT and banking stocks supported the recovery, even as broader market sentiment remained cautious.
“The intraday sell-off in Indian equities followed weakness across Asian markets, which posted steep losses amid a stronger dollar, rising US Treasury yields and continued skepticism over China’s economic revival,” said Siddhartha Khemka from Motilal Oswal Financial Services Ltd.
The lack of clarity in China’s stimulus plans weighed on metal stocks, dragging the Nifty Metal index down by 0.7 per cent.
On December 13, Sensex was up 843.16 points or 1.04 per cent, at 82,133.12. During the session, BSE’s benchmark made an intra-day high of 82,213 after recovering from a low of 80,082.
Midcap and smallcap stocks underperformed compared to largecaps. Nifty midcap 100 index closed at 58,991, down 30 points or 0.05 per cent. and the Nifty smallcap 100 index closed at 19,407, down 59 points or 0.30 per cent.
