Stretched Valuation Concerns Keep Markets Volatile

Mumbai: On Friday, the Indian stock market showed a significant recovery after a sharp decline in the previous session. BSE Sensex surged by over 759 points, closing at 79,802, reflecting a positive sentiment among investors. Key gainers included Bharti Airtel, which rose nearly 4.4 per cent following an upgrade from broker, and Cipla, which also performed well in the pharmaceutical sector.

Prashanth Tapse, Senior VP (research), Mehta Equities, said: “The Indian market is increasingly witnessing severe bouts of volatile trading, as the gyration from positive to negative zones has been very sharp owing to stretched valuation concerns and the lingering selloffs from foreign investors.”

Despite the recovery, there is no firm trend visible due to lack of fresh positive triggers. For the up move to sustain, FII offloading of Indian shares needs to cool down before we see any signs of an upward bias. Despite the overall gains, sectors like power faced challenges, with Power Grid Corporation being one of the notable losers, said Vaibhav Vidwani, Research Analyst, Bonanza.