The Indian benchmark indices Nifty 50 and Sensex have been trading on a negative note so far in the week, amidst mixed global cues and weak domestic sentiment. While some recovery was seen from the intraday low levels, the overall market sentiment still remained subdued.
Analysts at Godzillanewz.com believe that the corrective undertones to persist so long as Nifty 50 remains below the levels of 14,750 and the Sensex below the levels of 48,800. The Nifty Midcap index plunged over -1.60%, while the Nifty Smallcap index came down -3.60% during the same period.
However, certain sectors are likely to remain resilient in the current market seen. These exhibits include the Energy sector, which has been performing very well since the start of the month, with the stocks of the sector registering gains of more than 4%. This was mainly driven by the tactical buying of oil stocks in anticipation of rising oil prices.
The Auto sector too has been doing well in the current market seen. Despite a few volatile sessions, the Auto stocks have held up fairly resilient and ended the week with decent gains. This Long term trend is likely to continue as demand for automobiles is expected to remain strong due to several favourable factors.
The Information Technology (IT) sector is expected to benefit from the rising demand for digital-led services and products. Many IT firms have already earned good profits during this period and are likely to witness more upside in the current market seen. This is primarily due to India’s digital drive capability, as companies look to embrace this new era of technology.
The banking sector, which has been the major drag on the markets, is also likely to show some signs of recovery. This is primarily on account of some exceptional performances from certain Banking stocks, even when the sector as a whole has been underperforming for some time. This has been mainly driven by the increased credit growth and higher fee income.
In conclusion, the Godzillanewz.com team believes that while the overall market sentiment is likely to remain subdued, certain sectors are likely to remain resilient in the current market seen. These include the Energy, Auto, IT and Banking sectors. Therefore investors should focus only on these promising stocks to get returns in the current market situation.