For the fourth straight session, Dalal Street continued to rise. The Nifty index saw modest profit taking after reaching an intraday high of 25,220.
Sensex rises, Nifty wavers
On Tuesday, October 7, the week’s expiration session, the Sensex was up 140 points, but the Nifty 50 gave back the majority of its intraday gains. Investors are anticipating their next round of signals during the next earnings season.
The Nifty was up 34.35 points, or 0.14 percent, at 25,112.00 at the end, while the Sensex was up 161.86 points, or 0.20 percent, at 81,951.98, at the close. Approximately 122 shares were steady, 2119 shares fell, and 1686 shares increased.
Citing robust domestic demand, the World Bank increased its estimate of India’s GDP growth for FY26 from its initial June prediction of 6.3 percent to 6.5 percent. It did, however, lower its growth forecast for FY27 by 20 basis points to 6.3 percent.
Top sectors gain
On the sectoral level, the sectors that had the biggest growth were Oil & Gas, Financial Services, Banking, Construction, and Consumer Durables. On the other hand, Media, Consumer Goods, and a few companies continued to show weakness, making them the day’s laggards.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, thinks the market’s current modest rebound might get more steam in the future. Since the valuation gap between India and other markets has narrowed and the sharp appreciation in other markets has driven up their valuations, FII selling in India is gradually decreasing.
SIP inflows support rally
Mutual fund inflows, especially SIP inflows, are consistent and provide a solid foundation for the market. Corporate earnings in FY27 can wisely increase to roughly 15% thanks to the combined impact of the Budget income tax cut, GST cuts, and low interest rate regime, which can provide resilience to India’s GDP growth. Soon, the market will begin to devalue this. It is time for investors to be optimistic. Since the market is heavily short, any good news might lead to short-covering, which would help the surge even more,” he said.
Technically speaking, the Nifty broke over the crucial resistance level at 25,200, which might lead to the 25,500 mark. The immediate support level is around 25,000. Similarly, Ashika Institutional Equities said that the Bank Nifty is facing resistance around 56,500, and a breakthrough over this level might push it toward 57,000. The closest support is at 56,200.