Mumbai
With most state elections concluded, Indian stock markets are expected to stabilize as government spending ramps up to meet fiscal year 2025 capital expenditure targets, experts said on Saturday.
The Indian stock markets rebounded strongly on Friday, recovering losses from earlier in the week. The benchmark indices, Sensex and Nifty, gained more than 2% by the end of the week, with Sensex closing at 79,117.11 points, up 1,961.32 points, and Nifty closing at 23,907.25, up 557.35 points. Financial stocks, along with strong US labor market data, contributed to the market rally.
Blue-chip stocks, particularly in the banking sector, saw significant gains, as investors took advantage of lower valuations in several large companies. Experts noted that the correction in mid- and small-cap stocks also created opportunities for broader market momentum.
Sectors like real estate, FMCG, auto, consumption, banks, and IT all surged by over 2%. Krishna Appala of Capitalmind Research emphasized that sectors with long-term growth potential and adjusted valuations, like infrastructure and consumption, offer strong opportunities for investors.
Despite global challenges, India’s long-term growth potential remains strong. Experts recommend focusing on sectors aligned with urbanization, infrastructure, and consumption growth. As the markets react to upcoming state election results in Maharashtra and Jharkhand, investors are advised to maintain a strategic and long-term perspective.
