The stock markets began the new year – Samvat 2073, as per the Hindu calendar – on a weak note even as analysts forecast a bullish journey ahead on the back of better corporate earnings and policy reforms.
The benchmark BSE Sensex fell 11.30 points to 27,930.21. The broader Nifty of the National Stock Exchange (NSE) closed the special session at 8,625.70, down 12.30 points.
An initial gain of 154 points on the BSE during the Muhurat trading session on Sunday got erased with investors and brokerages placing token trades to mark the auspicious occasion and institutional entities including banks and foreign investors staying away.
The Muhurat session saw 15 of the 30 Sensex stocks losing ground with index heavyweights such as HDFC, Power Grid Corporation, Tata Motors, Adani Ports, HDFC Bank, TCS, Reliance Industries, TCS and ICICI Bank all ending in the red. Bluechip stocks such as Lupin, Wipro, ONGC, Sun Pharma, M&M, Infosys, Cipla and Coal India gained marginal ground to help the Sensex stem its losses.
Stock exchanges conduct a special Muhurat trading session every year to mark the advent of the new year. Typically, the volume in the Muhurat session is very thin.
Market participants, however, expected the year to be strong for equities because of the government’s reform push and an upswing in corporate earnings.
Bullish forecast
“We expect the year to be very promising in terms of corporate earnings and that will be reflected in the financial barometer ie Sensex and Nifty,” said Motilal Oswal, Chairman & Managing Director, Motilal Oswal Financial Services. “I am bullish and Nifty may cross 10,000 during the year.”
Kotak Securities said it expected Samvat 2073 to be better than Samvat 2072 when the benchmark indices gained close to 11 per cent amid significant volatility. It is advising investors to stick to quality and selectively invest in stocks of companies with a strong balance sheet and ethical management.
