The strength in the auto and metal stocks, along with strong second-quarter corporate earnings for India Inc., let Indian stock indices extend their gains for the eighth straight session on Monday.
At 9.42 am, the Sensex was up 23.10 points, or 0.039 percent, and the Nifty was up 18.60 points, or 0.10 percent, at 17,749.35 points. On Diwali Eve, stock indices increased during the auspicious hour of the Muhurat trading, with the Sensex rising 562 points to 59,869.22 and the Nifty50 rising 157 points to 17,733.40. Samvat 2079 officially begins on the first day of the special trading window, and purchasing assets is seen as auspicious.
"The initial months of Samvat 2079 are likely to be highly volatile with alternative bouts of selling and buying in the mother market US, which will have repercussions on other markets including India's," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Notably, due to the high US dollar index, weak rupee, and tightening of monetary policy, foreign portfolio investors have withdrawn money totaling Rs 5,992 crore from Indian stock markets so far in October, turning into net sellers for the second straight month.
"In this highly uncertain environment clarity is emerging on some important trends: one, the US economy is slowing down and the most likely scenario is a short and mild recession, which the market has largely discounted. India's growth too will be impacted by a global slowdown but India will be the least impacted large economy," he added.
Investors, he said, can approach Samvat 2079 with cautious confidence, stay engaged in premium stocks, and purchase shares of performing industries like banking, capital goods, telecom, and automobiles when they fall.
The rupee, meanwhile, started the day fairly stable at 82.69-82.71.
The rupee crossed the 83 mark for the first time ever on Wednesday. According to market estimates, the rupee has lost between 11 and 12 percent of its value so far this year.
