The Sensex closed at 79,724, up 335 points or 0.42%, after advancing as much as 634 points. The Nifty ended 94 points or 0.39% higher to close at 24,299.55. The Nifty Midcap100 index rose 0.67% while the Nifty Smallcap 100 went up 0.87%. Of the 3,648 traded stocks on the BSE, 3,017 advanced, while 558 declined.
The local trader community actively participates in the Muhurat trading session, engaging in token transactions with an intent to take home profits. Making money in this hour is considered auspicious, setting the tone for the year to come.
Many brokers, traders and their family members were present at the customary Muhurat trading function held at the BSE’s Phiroze Jeejeebhoy Towers.
Investors must brace for sharp swings in the market and relatively modest returns in Samvat 2081 following the robust rally in Samvat 2080, said fund managers.
“While the long-term growth outlook for the Indian economy remains strong, investors should temper their expectations, with potential returns likely in the 5-10% range over the coming year,” said A Balasubramanian, MD and CEO, Aditya Birla Sun Life Asset Management. “Muted earnings growth, geopolitical tensions, and a rebounding Chinese economy could keep markets range-bound.”
AgenciesInvestor Confidence
Equity indices have historically been on firm footing during Muhurat trading sessions amid low trading volumes and narrower stock participation. The BSE Sensex closed higher in 10 of the last 12 special sessions.Investor confidence in the market may face significant challenges as the Reserve Bank of India is likely to maintain high interest rates, analysts said. With record overseas fund outflows exceeding Rs 1 lakh crore and a potential rebound in the Chinese economy, driven by a larger-than-expected lus package, experts predict continued outflows from India in the next few months.
“After nearly 20% returns in Samvat 2080, investors can expect moderate gains of 12-14% in the new year,” said Dhiraj Relli, MD and CEO, HDFC Securities. “Key challenges include slower earnings growth in FY25 due to a high base, regulatory interventions, whereas FPIs (foreign portfolio investors) are expected to sell Indian stocks for the next few months over expensive valuations amid a rebound in the China economy.”
The Sensex has gained about 22% since the previous year’s Diwali, while the Nifty surged around 25%. The NSE Midcap100 and Smallcap100 indices jumped 37% and 39%, respectively, in this period, led by a rush of retail investor participation. The Sensex and Nifty reached record highs of 85,978.25 and 26,277.35, respectively, at the end of September.