The Indian Equity Market CommentaryOctober 24, 2017
The Indian share market recovered handsomely today after trading in red on Monday. The investors bought shares of banks like HDFC Bank and Kotak Mahindra Bank and Nifty Bank index rose by 0.6%. During the previous trading session, it had gone down by 0.8%. Though the markets ended the day in green today, the broader sentiment is still cautious more so because of the lingering concerns about the North Korean crisis, which is escalating day by day.
The impact of the North Korean crisis was evident in most of the Asian countries equity indexes as they are mostly trading on the defensive front. The US markets were closed on Monday for Labour Day. The Japanese Nikki closed the day in red going down by 0.6%.
In India, the domestic cues are good, but the sentiments are cautious due to the international reasons. A research analyst, Vaishali Parekh with Prabhudas Lilladher Pvt Ltd. said,
“MARKETS ARE NERVOUS AND THAT IS WHY THEY ARE NOT SCALING NEW HIGHS. THERE ARE A LOT OF INHERENT STRENGTHS WHEREBY LEVELS ARE NOT BROKEN AND MARKETS CONTINUE TO BE IN RANGE BOUND MODE.”
The Sensex today touched an intraday high and low of 31,819.99 and 31,674.23 points respectively before winding up for the day in green. The market breadth was bullish with BSE having 1,493 advances as against 884 declines.
The market observers are of the opinion that the negative global cues that are circulating due to the ongoing geopolitical tensions are hampering the risk-taking appetite of the investors. They are sitting on the side lines and waiting for the conditions to become clear before putting their money into the markets.