Market outlook for May 15
Valuations in large-cap stocks look right. Due to this, value buying in large caps has been encouraged.
Stock markets: Today also the market remained bullish on the second day of the week. The biggest rise was in realty, oil-gas, metal and power indices.
There was buying in auto and consumer goods stocks also. At the same time, selling was seen in FMCG and Pharma indices.
At the end of the trading session, the Sensex rose 328 points and closed at 73,105. At the same time, Nifty rose 114 points and closed at 22,218.
Bank Nifty rose 105 points and closed at 47,859. Whereas midcap has increased by 490 points and closed at 50,225.
Today there was buying in 21 out of 30 Sensex stocks. 34 out of 50 Nifty stocks saw a rise.
At the same time, there was buying in 10 out of 12 shares of Bank Nifty. The rupee strengthened by 2 paise against the dollar today and closed at Rs 83.51 per dollar.
How can the market move in future?
Anita Gandhi of Arihant Capital Markets said, “There has been increased volatility in the market due to speculations regarding the results of the general elections. Apart from this, the indices are falling due to selling by FIIs.
There has been profit booking in the market also due to expensive valuations. However, once the Nifty 50 index dropped below 22,000, buying started again”.
Santosh Meena of Swastika Investmart says that valuations in large-cap stocks look right. Due to this, value buying in large caps has been encouraged.
He attributed the rise in benchmark indices to good global cues and traders covering short positions.
Santosh is of the opinion that valuations in the midcap and smallcap sectors remain expensive, due to which there is a risk of poor performance in some segments.
Santosh Meena has advised investors to focus on large caps as after the general election results, FIIs are expected to invest aggressively in large-cap stocks.
Market experts also hope that volatility will remain till the results of general elections are announced and there will be an increase in it.
Meena said, after the election results are out, India VIX will again fall to 12-13 levels.