Stock Market forecast: Will Sensex, Nifty rise? What experts said
The Indian stock market witnessed a brilliant October, with Sensex and Nifty soaring over 4.5% to 52-week highs. This rally was fueled by robust corporate earnings, returning foreign investments, and festive demand. While experts anticipate some consolidation due to high valuations, strong domestic fundamentals and FII/DII support are expected to maintain a positive bias.
New Delhi: The domestic stock market performed brilliantly in the month of October. During this time, the Sensex rose 3,671 points i.e. about 4.57% and the Nifty rose 1,111 points i.e. about 4.51%. According to a PTI report, both indices reached their 52-week high on 23 October. This rise was due to factors such as the strengthening of corporate earnings, the return of foreign investment and the decrease in global bond yields.
Pravesh Gaur, Senior Technical Analyst, Swastika Investmart, said, "The sharp recovery in October is the result of many positive factors. Sentiment will remain strong even further, but after the recent rise, some consolidation can be seen.” According to Gaur, valuations are now at a high level, so volatility and sectoral rotation can be seen in the market.
Key Drivers behind Stock Market Rally in October
Foreign investors made net purchases worth Rs 14,610 crore in October, which is a sign of return after three months of selling. At the same time, the purchase of domestic institutional investors (DII) also strengthened the market.
Regarding the short-term outlook of the market, Motilal Oswal Financial Services Research Head Siddharth Khemka said that the market may remain range-bound, but the positive bias will remain intact. Strong domestic fundamentals are offering support, even if global uncertainties cap the short-term upside.
Boom in auto sector
VSRK Capital Director Swapnil Aggarwal said that the reason for the more than 4.5% rally between the Sensex and the Nifty in October was the government's recent GST reforms and festive demands. Companies like Maruti Suzuki, Mahindra and Mahindra, Tata Motors and Kia India registered record sales in October. At the same time, Toyota and Skoda also achieved double-digit growth.
Indian economy strong
Along with this, he said that India's economic fundamentals are strong. Steady GDP growth, good earnings and infrastructure spending will maintain investor confidence. The government's focus on manufacturing, capital expenditure and policy stability will strengthen the market by 2025.
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