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Muhurat Trading: Samvat 2078 begins on a cheerful note – Economic Times

Mumbai: Samvat 2078 started on a cheerful note for investors with stocks ending firm in the special 60-minute Muhurat trading session held to mark the beginning of the traditional new year on Thursday.

The Sensex closed at 60,067.62 , up 0.5%. The Nifty gained by a similar level to close at 17,916.80. India stocks mirrored the strength in global markets after the US Federal Reserve on Wednesday indicated it will be patient on increasing interest rates even as it expectedly announced the start of the withdrawal of the stimulus programme this month.

Mid and smallcap shares outperformed blue chips on Thursday. The midcap index rose 0.8% and the smallcap index jumped 1.5%. The domestic trader community actively participates in the Muhurat trading session, making token transactions with an intent to take home profits. Making money in this hour of trading is considered auspicious. Many brokers, traders and family members were present at the customary Muhurat trading function held at the BSE’s Phiroze JeejeebhoyTowers.

Indian stocks achieved several milestones in Samvat 2077, with the Sensex rallying 38% since Diwali last year. The BSE’s Mid-cap and Small-cap indices gained 63% and 83%, respectively. Market participants said stocks may not surge as much this Samvat.

“The market will do well next year also because of a swift recovery in the economy and strong retail participation, though the pace may not be the same as the previous year,” said Raamdeo Agrawal, chairman, Motilal Oswal Financial Services.

With business activity picking up, economic growth is expected to rebound but money managers said much of this optimism has already been baked into the rally in the stock market in the past18 months.

“In last18 months, the equity market has delivered great returns, but over the next three years, the return will not be as good,” said Nilesh Shah, MD, Kotak AMC.

Global Headwinds may Impact
“However, it will still be better than many other asset classes. So, invest with a proper asset allocation between debt, equity, real estate, commodities, offshore assets, so that overall, investors continue to outperform inflation.”

Central banks worldwide have begun recognising the build-up of inflation pressures. The Federal Reserve said Wednesday it will begin winding down its pandemic-era liquidity programme in November.

Global headwinds in the form of rising inflation and withdrawal of monetary stimulus packages might impact momentum, but strength in Indian macros and improving micros may help offset these, said Dhiraj Relli, MD and CEO, HDFC Securities.

IIFL Group founder and chairman Nirmal Jain said, “The Indian economy is firing on all cylinders and private sector capex cycle has revived after a decade. Exports are looking up and interest rates are low, which is boosting the demand in housing and other areas of the economy. India is also poised to benefit from the global China+1 strategy.”

The market will focus on the next set of earnings announcements next week after the Diwali break. Banks and financials offer the best risk-reward balance in the market for next year, analysts said.

“One of the best-performing sectors during Samvat 2078 would be banking since there are clear signals of credit growth, which was muted last year,”

said VK Vijayakumar, chief investment strategist,

. “The star performers of Samvat 2077–realty and metals–will continue to be resilient since the boom in these segments appears to be multi-year stories.”

Auto stocks rallied sharply during Muhurat trading after the government cut excise duty on diesel and petrol on Wednesday. The gains in the market were broad-based, with all sectoral indices ending in the green — the BSE Auto, FMCG, Industrial and Capital Goods.