New Delhi, Oct 3 (SocialNews.XYZ) Indian equities could stay flat or slip further this month after one of the sharpest monthly sell‑offs in recent years, with Nifty sliding nearly 6 per cent in September and logging its eighth straight weekly decline, according to analysts.
Analysts have forecasted global factors -- higher US yields, a firm dollar, elevated crude and rupee weakness -- to continue to act as the biggest headwinds.
The eight weeks of decline marked the longest losing run of the benchmark index in 25 years.
They also said that October may bring some stability, but a clean recovery is unlikely.
Festival demand, government spending and the start of the earnings season could support large banks, select manufacturers and domestic consumption‑linked stocks, but foreign inflows are expected to remain muted, according to them. A clean recovery over the next three months still depends on oil prices and US yields, rather than on domestic demand alone.
Equity benchmarks Nifty and Sensex fell sharply through September as foreign investors intensified selling, crude oil prices stayed elevated, the rupee came under pressure and US bond yields climbed above 5 per cent.
The 50-scrip basket Nifty fell for all last four trading sessions during the week and ended 3.1 per cent lower at 22,422 on Thursday.
Moreover, foreign institutional investors (FIIs) remained net sellers in domestic markets in the past week and offloaded shares worth Rs 34,970 crore. FIIs sold heavily in September ending their two-month buying streak to take the year-to-date outflows over Rs 2.5 lakh crore. While domestic liquidity can cushion downside, but a sustained recovery will be difficult if foreign selling persists, experts said.
Many analysts predicted a recovery by December, with large caps leading the rebound. They urged investors to focus on domestic earnings, sensible valuations and strong balance sheets, adding that mid and small caps may take time to deliver profits.
They noted that a sustained recovery also depends on the second quarter earnings, with investors keen on top-line growth, margins and management commentary. Weak monsoon conditions in several states could also weigh on sentiment.
—IANS
aar/ag
Source: IANS
Gopi Adusumilli is a Programmer. He is the editor of SocialNews.XYZ and President of AGK Fire Inc.
He enjoys designing websites, developing mobile applications and publishing news articles on current events from various authenticated news sources.
When it comes to writing he likes to write about current world politics and Indian Movies. His future plans include developing SocialNews.XYZ into a News website that has no bias or judgment towards any.
He can be reached at gopi@socialnews.xyz
This website uses cookies.
