Indian equity markets are expected to consolidate with a positive bias in the coming sessions, following a resilient performance last week. The broader markets mirrored this strength, as the Nifty Midcap 100 index rose by 0.7 percent and the Nifty Smallcap 100 index gained 2.5 percent, both ending the week in positive territory.
According to Siddhartha Khemka, market analyst, the positive momentum is likely to continue, supported by stable global cues and domestic institutional inflows. However, he cautioned that consolidation cannot be ruled out as valuations remain elevated.
Market Performance Overview
The benchmark indices posted modest gains, with the Nifty 50 and Sensex closing higher. The resilience in the broader market was notable, as midcap and smallcap stocks outperformed. The Nifty Midcap 100 index advanced 0.7 percent, while the Nifty Smallcap 100 index surged 2.5 percent.
Key Drivers
- Stable global cues: Positive trends in global equity markets provided support.
- Domestic institutional buying: Continued buying by domestic institutions boosted sentiment.
- Selective stock picking: Investors focused on quality stocks with strong fundamentals.
Analysts expect the market to consolidate around current levels, with a positive bias. Sector-wise, banking, IT, and auto stocks are likely to remain in focus. The broader market may continue to see interest from retail and high-net-worth individuals.
Outlook
Going forward, the market will track global developments, including central bank policies and geopolitical events. Domestically, corporate earnings and macroeconomic data will be key. Experts advise investors to maintain a stock-specific approach and avoid aggressive bets.
