Domestic Equity Benchmarks Extend Gains as Volatility Index Plunges
Equity markets in India continued their positive momentum on Thursday, with benchmark indices Sensex and Nifty 50 posting gains for the third consecutive session. The gains were driven by positive sentiments in global markets and strong performance from sectors such as telecom, technology, and consumer durables.
Volatility Index Drops Significantly
Notably, the volatility index, India VIX, witnessed a significant decline, indicating a reduction in market volatility and increased stability. India VIX, which measures the expected volatility of the Nifty 50 index over the next 30 days, dropped to its lowest level since July 28, 2023. This suggests that market participants are less apprehensive about potential downside risks, which bodes well for sustained market recovery.
Sensex and Nifty Rise
The Sensex index closed with a modest gain of 90 points, or 0.12%, at 73,738.45. This rise was primarily driven by gains in heavyweights such as Bharti Airtel, ITC, Infosys, and SBI, which offset losses in Reliance Industries. The Nifty 50 index also ended the day higher, closing at 22,368, up 32 points or 0.14%. Both indices have gained around 1.7% over the past three trading sessions.
Mid and Smallcap Indices Outperform
In addition to the benchmark indices, midcap and smallcap indices also exhibited strong performance. The BSE Midcap index rose 0.52%, while the BSE Smallcap index jumped 1.05%. This outperformance indicates broader market participation and investor confidence in smaller companies.
Outlook for Nifty 50
Analysts expect the positive momentum in the market to continue, citing the decline in the volatility index and sustained strength in the broader market. However, they also advise traders to adopt a stock-specific approach and utilize corrections to accumulate quality stocks.
Stocks to Watch Today
Several major companies, including Axis Bank, HDFC Life, Hindustan Unilever, and LTIMindtree, are scheduled to release their quarterly earnings results today. These results will be closely watched by investors for insights into corporate performance and the overall health of the economy.
Intraday Stocks for Today
Stock market experts have recommended six stocks for intraday trading today: Sudarshan Chemical Industries, Chambal Fertilizers & Chemicals, RVNL, Parag Milk Foods, GMR Airports Infrastructure, MHRIL, and Chambal Fertilizers & Chemicals. These stocks have shown bullish momentum and technical indicators that suggest potential for further gains.
Conclusion
The Indian equity markets have been exhibiting a positive trend in recent sessions, supported by declining volatility and strong performance from various sectors. While uncertainties remain, analysts remain optimistic about the market outlook and recommend investors to focus on stock-specific strategies and consider potential opportunities in mid and smallcap stocks.
