Mumbai, Dec 7 || Amid a positive turnaround from foreign institutional investors (FIIs) to India, the Indian stock market maintained a positive outlook throughout the week as the core sector output in October and stability in service PMI data showed signs of recovery, experts said on Saturday.
FIIs returning to India in expectation of a dovish monetary policy by the Reserve Bank of India (RBI) also supported the sentiment.
“RBI turns more realistic with a revision on its growth forecast for FY25. While boosting liquidity in the financial system by reducing CRR by 50 bps, RBI reiterates that maintaining macroeconomic stability remains crucial,” said Vinod Nair, Head of Research, Geojit Financial Services.
The market closed flat on Friday. Sensex settled at 81,709.12 while Nifty ended at 24,677.80. Nifty is holding steady above the crucial 24,650 support level.
“The primary trend remains positive, as Nifty trades near the upper band of the Donchian Channel, which is trending higher — a signal of potential bullish momentum,” said Om Mehra, Technical Analyst, SAMCO Securities.
Additionally, India's volatility index (VIX) remains subdued, hovering below the 15 mark, suggesting a contraction in volatility and reduced fear in the market.
Investors are now accumulating the momentum stocks as the expected pick-up in the government capex may provide some impetus to infra, capital goods, realty, cement, and metal industries in the second half this fiscal.