Indian stocks extend gains on firm global cues

NEW DELHI: Indian stock indices extended the gains they managed to accumulate last week through Monday morning opening bell, tracking firm overseas market cues. Sensex and Nifty were about 0.5 per cent higher each. Snapping two weeks of cumulative losses, Indian stock indices regained some of their lost ground last week, in line with their global peers. On a cumulative basis, the indices gained 1.4 per cent each over the course of Monday- Friday.

The US Federal Reserve keeping the key policy rate unchanged for the second straight time at 5.25-5.50 per cent, as was widely expected, also boosted the stocks globally.

US jobs data for October showing that it slowed more than expected raised hopes that the US Federal Reserve may be done with its interest rate hiking spree. "The ability of stock markets to climb walls of worries is manifesting clearly in these troubled times. Buy on dips strategy has worked well for investors with risk-appetite. The market construct now is favourable for the bulls despite the uncertainty surrounding the Israel-Hamas conflict," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

"Even though the Small cap index is showing resilience, valuation comfort and safety are in large caps. Financials and automobiles are on a strong wicket. For IT, momentum is in mid-caps." Going ahead into this week, corporate results of Nifty 50 companies such as Mahindra and Mahindra, Adani Ports and Special Economic Zone, Power Grid Corporation, Coal India, Eicher Motors, Hindalco Industries, and ONGC will give fresh cues to the financial market.

Also, global crude oil prices will be a key monitorable after key oil exporters Saudi Arabia and Russia reportedly confirmed on Sunday they would continue with their additional voluntary oil output cuts until the end of 2023, amid the conflict in West Asia.