Nifty 50 Surges Over 400 Points, Sensex Reclaims 80K: Experts Highlight Top Stock Picks

Nifty 50 Surges Over 400 Points

Nifty 50 Surges Over 400 Points, Sensex Reclaims 80K: Experts Highlight Top Stock Picks

Building on the momentum from Friday’s rebound, the Indian stock market started the week strong, with significant gains in early trading. The Nifty 50 index opened higher at 24,253, quickly climbing to an intraday high of 24,330, marking a 423-point rally from its previous close of 23,907.

Similarly, the BSE Sensex opened at 80,193 and peaked at 80,452 in the morning session, recording a jump of 1,355 points. The Nifty Bank index also saw robust gains, opening at 52,046 and reaching an intraday high of 52,232, reflecting an impressive 1,100-point surge.

Factors Driving the Rally

Political Stability After Maharashtra Election Results
The decisive victory of the BJP-led alliance in Maharashtra’s elections played a crucial role in boosting investor sentiment. According to Palka Arora Chopra, Director at Master Capital Services, the win is expected to bring political stability and strengthen pro-business policies, positively influencing sectors such as infrastructure, urban development, and manufacturing.

“The continuity of policy direction, particularly in infrastructure development, is likely to attract further investments. This could lead to significant activity in the construction and real estate sectors,” Chopra added.

Reliance’s Strong Performance Amid Geopolitical Tensions
Reliance Industries, a heavyweight in the Sensex, gained around 2.5% during early trade. Mahesh M. Ojha, AVP at Hensex Securities, attributed this to rising crude oil prices driven by escalating geopolitical tensions. The company is poised to benefit from increased margins on existing stockpiles, along with continued growth in its retail and telecom businesses.

“Reliance looks strong for both short-term and long-term investors, given the positive trends in its core and diversified operations,” Ojha noted.

Sectoral Outlook

The election results have shifted investor focus from defensive sectors like FMCG and pharma to more aggressive plays in railways, infrastructure, and banking.

Avinash Gorakshkar, Head of Research at Profitmart Securities, observed that government initiatives in infrastructure and railways could drive demand in these sectors. Additionally, increased credit demand from infrastructure projects is likely to benefit banking stocks.

“The alignment of policies between the central and Maharashtra state governments ensures a conducive environment for growth in these sectors,” Gorakshkar stated.

As the market gains momentum, experts suggest keeping an eye on infrastructure, banking, and energy sectors for potential opportunities.

Read Also: Mutual fund monthly SIP inflow crosses Rs 25,000 crore mark for first time

Mutual fund monthly SIP inflow crosses Rs 25,000 crore mark for first time

SIP inflow crosses Rs 25k crore

SIP inflow crosses Rs 25k crore in October 2024, a notable increase from ₹24,509 crore in September. This is the first time SIP inflows have exceeded the ₹25,000 crore mark.

The number of new SIP registrations also saw significant growth, with 63.7 lakh new accounts in October, up from 58.7 lakh in September.

As a result, the total number of SIP accounts rose to 10.12 crore, reflecting a 2.5% increase from 9.87 crore in the previous month.

The total Assets Under Management (AUM) from SIPs reached ₹13.30 lakh crore in October, marking a 2.3% rise from ₹13.01 lakh crore in September. This growth comes amid a broader trend of rising equity inflows, with the mutual fund industry recording its 44th consecutive month of positive inflows.

The retail folios have now crossed 17.23 crore, with the total AUM standing at ₹67.26 lakh crore.

Anish Mehta, National Head of Sales, Marketing & Digital Business at Kotak Mahindra Asset Management, noted that investors are increasingly favoring large-cap funds, particularly in the current market environment. He observed, “Investors are recognizing the stability of large-cap funds, and there’s also a shift toward multi-cap and flexi-cap funds for a more balanced risk approach.”

Venkat Chalasani, CEO of AMFI, commented on the broader trend, saying, “October 2024 marks the 44th consecutive month of positive equity inflows, continuing since March 2021. This sustained momentum in SIPs and AUM is a testament to the growing maturity of Indian investors, who are focusing on long-term wealth creation through mutual funds.

Read Also: 5 Reasons why you need a Financial Distributor

5 Reasons why you need a Financial Distributor

why you need a Financial Distributor

Health is wealth. Good health is not just the absence of any illness, but complete physical and mental wellness of an individual.

In today’s world, stress affects both physical and mental health – and one contributor to stress is the state an individual’s finances.

We all have financial goals we want to reach, and savings just don’t cut it. It’s important to invest. While we invest, how do we know we’re doing the right thing for our goals?

Here’s where your financial doctor, or advisor, comes into the picture. Just like you need a doctor for your physical or mental health, you need one for your finances too.

So, how can your financial doctor help you?

  1. Understand your financial health –Your financial advisor will work with you to assess your current financial health – your assets, liabilities, income and expenses. He/she will also consider any expected future obligations (insurance, taxes, other long-term expenses) and sources of income (pension, gifts, etc.) to get a complete picture of where you stand.
  2. Assess your goals –Once your advisor maps out where you stand, he/she will understand your investment goals, time frame and risk appetite. An understanding of risk appetite will allow your advisor to determine your asset allocation. He/she will also assess your retirement needs at this stage.Invest now
  3. Build the financial plan –The next stage is where your advisor charts out a comprehensive financial plan for your goals. This plan will include details such as where to invest, how much to invest, for how long to invest. He/she has the expertise to understand how all these products will work in tandem for you to achieve your goals. The plan will also look at your retirement plan, your projected withdrawal rates during retirement and have the best- and worst-case scenarios for your expected life span. If you’re already investing for your goals, your advisor will review your current habits and suggest a course of action. If you’re investing without goals in mind, your advisor will help you allocate your existing investments for your goals. Read why goal-based investing is important here. Once your plan is ready, it’s on you to implement it.
  4. Help you understand where you’re investing –When building your financial plan, it is important to understand the products you’re investing in. The pros and cons, how it fits in your portfolio, what it can do for you – your advisor will help you with this.
  5. Regular reviews and adjustments –It’s a good idea to revisit your investments regularly to check if you’re on track, review what you’re doing and see if you need to adjust your plan to incorporate new goals or modify/remove existing ones. Depending on your needs, your advisor will suggest changes to take you closer to your goals.

Financial advisors are the doctors you need for your financial health. With their expertise, you can get the best out of your investments.