Somber global cues have largely cast a shadow on market sentiment and encouraged profit-taking across various global markets, including India. It is worth noting that Indian stock indices reached their zenith last week, buoyed by encouraging economic indicators encompassing inflation, GDP, and investment outlook.
Image-: The Statesman
In a rather intriguing turn of events, Indian stock indices exhibited a marginal rise during Monday morning’s trading session subsequent to a previous day’s descent into the red zone. As of the time of crafting this report, both the Sensex and Nifty displayed a 0.2-0.3 percent elevation. The notable VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, astutely observed a potential waning of the global stock market rally.
Vijayakumar further remarked, “Last week witnessed the cessation of the 5-week winning streak for the S&P 500, while in India, the Mid and Small-cap indices concluded their 12-week triumphant run. The forthcoming two days will hold the key to determining the sustainability of this trend.” In light of the circumstances, Vijayakumar advised investors to exercise patience and vigilance in order to discern new directions in the ever-fluctuating financial market.
Ajit Mishra, SVP – of Technical Research at Religare Broking Ltd, shed light on the prevailing somber global cues, which have largely cast a shadow on market sentiment and encouraged profit-taking across various global markets, including India. It is worth noting that Indian stock indices reached their zenith last week, buoyed by encouraging economic indicators encompassing inflation, GDP, and investment outlook. Although both the US and India are currently experiencing a moderation in inflation, the question remains as to the sustainability of this trend.
