November could favour bulls, but macro headwinds cloud outlook
In November, investors are optimistic about Indian equities due to ongoing festive celebrations and better-than-expected corporate earnings. While the Sensex and Nifty boasted gains in October, other market indices saw declines. However, potential threats such as rising crude oil prices and global uncertainties remain. A noticeable surge in purchases by foreign portfolio investors signals renewed…
Investors approaching November must balance the historically positive month for Indian equities with a daunting array of macroeconomic headwinds. The Sensex and Nifty 50 have ended higher in seven of the last ten Novembers, with the BSE Midcap 150 index and BSE SmallCap 250 both showing gains in six of those years. Kranthi Bathini, an equity strategist at WealthMills Securities, believes festive activity extending into November, corporate earnings, and renewed foreign buying could provide a tailwind for equities, citing recent results from Reliance Industries and Jio Platforms.
However, global uncertainties, high oil prices, and a weakening rupee remain key risks. While October saw the Sensex and Nifty rise by 1.9% and 2.7% respectively, the BSE Midcap 150 and BSE SmallCap 250 slipped by 4% and 6.3% respectively. Foreign portfolio investors (FPIs) have been net buyers, purchasing nearly $2 billion worth of Indian equities in the past two weeks, driven by global investor interest in the US, Taiwan and South Korean AI and semiconductor sectors.
Experts suggest that a potential de-escalation of tensions in West Asia could trigger a relief rally in equities. Aditya Agarwala, co-founder and CIO of InvestValue Capital, recommends favoring companies with strong domestic earnings visibility, pricing power, and good order books.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
