In a fervent market rally, the Indian markets reached new peaks, propelled by the performance of IT giants. The IT sector, showing early signs of recovery, particularly in the Banking, Financial Services, and Insurance (BFSI) segment, has significantly influenced market sentiments. The belief in an improved outlook for BFSI in FY24-25 was a key driver behind the soaring performance of IT heavyweights on Friday.
On Thursday, 2355 stocks advanced, 1475 declined and 107 remained unchanged, with an advance decline ratio of 1.59 on the Bombay Stock Exchange (BSE), indicating positive closing of stocks in broader markets.
Indian shares traded higher on Friday despite mixed cues from global markets as resilient labor market data from the U.S. dampened expectations of multiple interest rate cuts by the Federal Reserve this year.
Sandip Sabharwal says: “Stocks like HAL, BEL or stocks even in the ship building space, should do well longer term because the revenue visibility is so great that they will ultimately keep on performing. If you own them, you should not be selling. But if you do not own, you should wait for some bad days of the market when there are corrective moves and there are sudden sell-offs to add.”
In the past week, the market experienced some turbulence, particularly on Wednesday when a significant dip was observed, impacting small- and mid-cap stocks. Approximately 668 stocks suffered a decline of more than 4.5%.