New Delhi: Indian stock indices extended their gains from the previous week and traded in the green in early trade on Monday, primarily due to some fresh buying at lower levels.
Stocks in the US climbing sharply on Friday also lent support to the Indian stocks this morning. Notably, the domestic indices had declined during four out of five sessions the previous week. Domestic stock markets have been going through a rough patch due to various unfavorable fundamentals ranging from a consistent devaluation of the rupee, rising current account deficit, selling-off by foreign investors, and fears of a possible global recession, among others.
At 9.32 a.m., Sensex was at 54,198.62 points, up 437.84 points or 0.81 per cent, whereas Nifty was at 16,185.80 points, up 136.60 points or 0.85 per cent.
Among the Nifty 50 stocks, 46 were in the positive territory, National Stock Exchange data showed.
“FMCG and autos are benefiting from the recent commodity price crash. Capital goods also are doing well on improving capital expenditure prospects. Investors can consider slightly restructuring their portfolios in the light of the leadership changes in the market,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
As concerns of growing inflation and recession hang over the global economy, the Indian benchmark indices are projected to remain uncertain in the near term, said Apurva Sheth, Head of Market Perspectives, Samco Securities.
“In this context, investors are anticipated to keep a close watch on the currency market, as the USD/INR has reached new all-time lows of 80.23. Further, with the earnings season in full swing, market players should avoid reading too much into India Inc.’s numbers and instead focus on the management commentary. Investors are advised to remain put and search for opportunities to raise their weightage in quality players,” said Sheth.