Nifty and Sensex surged over 1 per cent by afternoon, but FII selling continues. Know why markets surged
Sensex and Nifty surged over 1 per cent by midday on October 28, strengthened by buying in the metals and PSU bank sectors. At 1.17 PM, the Sensex was up 950 or 1.13 per cent at 80,344, and the Nifty was up 240 points or 1 per cent at 24,430. In October 2024, the Nifty 50 index experienced a significant decline of 6.32 per cent amidst aggressive selling by foreign investors. Over Rs 1 lakh crore worth of shares got sold off in the Indian market.
The recent surge in ICICI Bank's share prices, following the announcement of its Q2FY25 financial results, has played a significant role in contributing to a positive opening for the wider market. ICICI a heavy-weight stock surged 3.53 per cent or Rs 44 in a day.
Further, the alleviation of concerns surrounding the ongoing Middle East conflict has further bolstered investor sentiment. Signals from Israel after the missile strikes in Iran suggest there won't be any follow-up of the recent escalation. Despite this uplifting momentum, analysts issued warnings about potential market downturns because the exit of foreign institutional investors (FIIs) from the market continues, coupled with the lacklustre performance of recent corporate earnings, raising red flags for future growth.
Financial experts are advising a more selective, stock-specific investment strategy, emphasizing sectors that have demonstrated strong performance and possess favorable valuations to stimulate recovery.
In broader market movements, the BSE Midcap index registered an increase of 0.65 per cent, while the BSE Smallcap index experienced a more robust gain of 1.35 per cent.
On the Sensex major gainers were ICICI Bank, Mahindra & Mahindra (M&M), JSW Steel, Adani Ports, IndusInd Bank, Nestle India, and Hindustan Unilever (HUL).
Around midday, all 13 sectoral indices were trading in positive territory. The Nifty metal, PSU bank, realty and pharma indices were the standout performers, each experiencing gains at 4.18 per cent, 2.68 per cent, 1.37 and 1.67 per cent. Major reversals were seen in the Nifty Auto index and Nifty metal as they managed to break a four-day losing streak, and five-day losing streak.