Samvat 2081 ended on a positive note and investors were once again taught the importance of patience while investing in equities. Now as the markets are preparing for the arrival of Samvat 2082, the sentiment has again turned towards optimism. It is expected that the patience of Samvat 2081 may start bearing fruits in the new Samvat. On October 20, the Sensex closed at 84,363.37, up 411.18 points or 0.49 per cent. Nifty closed at 25,843.15, up 133.30 points or 0.52 per cent.
On October 21, there will be Muhurta trading in the stock market, the omen of Diwali and the beginning of the new Samvat. In the last Samvat, consolidation was seen in the Indian stock markets for more than a year. During this period, Nifty increased by 3.9% and Midcap index increased by 1.1%. However, the smallcap index showed a decline of 4.6%.
How was the performance sector wise?
In the last Samvat, the IT sector emerged as the weakest link. The sector remained under pressure due to its exposure to the US market, policy uncertainties regarding H-1B visas and sluggish growth among large software exporters. Nifty IT index closed Samvat 2081 with a decline of 18.5%. On the other hand, defense sector emerged as a new theme of investment. Investors embraced the government’s focus on domestic manufacturing and Swadeshi. Due to this, Nifty Defense Index increased by about 25%. It is believed that this sector may remain in focus in the coming years also.
Many adverse circumstances also emerged in Samvat 2081, due to which the stock market remained within a limited range. Trade tensions between India and America, war between India and Pakistan, geopolitical tensions, etc. reduced investor confidence. Global funds were attracted to the rapidly growing AI trade. At the same time, there was a lack of deep-tech or AI-focused sector in India to attract foreign investment. High valuations further encouraged selling by FPIs, or foreign portfolio investors, which diverted foreign capital to other regional markets.
Will the new Samvat be a good one?
Now with the new Samvat approaching, things seem to be changing. Sentiment improved in October. On monthly basis, Nifty rose 4.9%, Midcap 5% and Smallcap 3.6%. The festive season has further increased the excitement. With the market ending Samvat 2081 in the green, investors are entering Samvat 2082 with new confidence and hope for more profits ahead.
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