Indian Stock Market Remains Low While Global Markets Recover
Indian stock market remained range-bound during the past week even as stocks managed to recover quite smartly across the globe. Indian market also remained low as public sector banks remained on investor’s selling list. PNB suffered the most during the recent banking scam involving Nirav Modi and Gitanjali Gems.
Dow Jones Industrial Average staged a smart recovery over the week. While the FED meeting led to decline in Dow Jones, the U.S. markets recovered a day after Federal Reserve meeting. Dow Jones looks strong at the moment and with minor correction that started in February, markets are looking forward to gain further in upcoming weeks.
Indian markets can gain strength if the U.S. markets remain strong. Banking stocks have found support at lower levels during the end of the week. Investors have shifted money to other sectors. Pharmaceutical stocks suffered during the start of the week but by the end the week, majority of Pharmaceutical counters recovered. Sun Pharmaceutical suffered volatility during the week.
NSE Nifty is still above its crucial support levels. Some mid-cap counters have suffered in terms of valuations in February. With market gaining strength, mid-cap stocks can also stage a smart recovery in upcoming weeks. The outlook for Indian markets is positive but we could witness selling at higher levels.
Further revelations in PNB scam could spook investors. Market analysts have been talking about double-digit levels in PNB but the public sector bank has found support around 111-115 levels.