Sensex, Nifty extend rally for second day on global cheer, FII inflows
Easing geopolitical tensions and improving risk sentiment push benchmarks closer to record highs; analysts advise buy-on-dips strategy amid bullish undertone.
Easing geopolitical tensions and improving risk sentiment push benchmarks closer to record highs; analysts advise buy-on-dips strategy amid bullish undertone.
The Sensex declined by around 7%, led largely by decline in real estate, IT and FMCG stocks. However, this trend can reverse soon as on a fundamental level, these sectors remain robust.
While the BSE Sensex fell over 1,500 points, the Nifty 50 declined by 475 points to trade near 22,200 levels.
Technically, on daily charts, the market has formed lower highs and lower lows, and on weekly charts, it formed a long bearish candle, which is largely negative.
Quality small caps are expected to generate superior returns hereon while large caps may remain range-bound due to high valuations and lower growth.
Small cap companies emerged as the standout performers, posting a robust 22% year-on-year (YoY) earnings surge - outpacing their mid-cap and large-cap counterparts.
The correction creates opportunities for investors to make strategic long-term investment allocations in the small-cap space.
Among sectors, PSU banks were the top performer, rallying over 2.11 per cent, whereas the Metal index lost the most, shedding over 1 per cent.
Easing geopolitical tensions, particularly around Russia-Ukraine and renewed U.S.-Iran nuclear discussions, dampened safe-haven demand.
BSE Sensex and Nifty 50 indices ended the week in the negative territory. However, the midcap and the smallcap indices outperformed the larger peers. BSE 250 smallcap index saw gains of ~1%.