Mumbai: Most of the state elections are over, and the market may find stability as government spending improves in the coming months to meet the FY25 capex target, market experts said on Saturday.

The Indian benchmark indices recouped the current week’s losses on Friday with a strong bounce back as investors used the bargain opportunity to accumulate beaten-down stocks.

This week, the Sensex closed at 79,117.11 after gaining 1,961.32 points, or 2.54 percent, and the Nifty closed at 23,907.25 with a gain of 557.35 points, or 2.39 percent. The rally in financial stocks and strong US labour market data were among the factors driving the Sensex and Nifty up more than 2 percent.

A rally in blue-chip bank stocks also helped the benchmark indices jump in Friday’s trade.

“Many of the blue chips are available at below-average valuations, while meaningful corrections in mid- and small-cap indices provide an opportunity for broad-based momentum,” said experts.

Sectors like realty, FMCG, auto, consumption, banks, and IT gained more than 2 percent.

According to Krishna Appala from Capitalmind Research, opportunities exist in specific sectors and broader themes that hold long-term potential, particularly in areas that have experienced significant price adjustments but remain fundamentally strong.

“Investors are cautiously adding to positions in areas that offer greater clarity on earnings visibility, especially where the longer-term structural story remains intact. While patience is essential, the sector’s adjusted valuations make it an area worth monitoring closely,” Appala maintained.

In the broader market, corrections are creating opportunities to accumulate quality stocks with strong fundamentals and resilience to macroeconomic pressures.

Despite global challenges, India’s long-term growth story remains compelling.

“Investors should focus on sectors aligned with structural themes such as urbanisation, infrastructure, and consumption growth. Strategic portfolio adjustments, disciplined investing, and a long-term perspective are critical to navigating the current environment,” said experts.

On Friday, all sectoral indices ended in the green, with the Nifty IT surging over 3 percent. Buying emerged at lower levels in blue-chip stocks, causing several index heavyweights to gain significantly.

“On Monday, the market will react to the outcome of state assembly elections in Maharashtra and Jharkhand along with other global triggers, including developments in the Russia-Ukraine war,” said Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd.

 

 

 

 

 

 

–IANS