Bearish markets, Resilient large-caps: What’s the right investor strategy for this phase?
The worst trading day was January 21, with both indices plunging nearly 2%. Although the market recovered some losses on January 22-23, it couldn’t sustain the momentum.
- Jan 26, 2025,
- Updated Jan 26, 2025 11:59 AM IST
The Indian stock market closed the trading week from January 20-24 with a bearish tone, as Sensex and Nifty fell by 0.5% to nearly 1%. Realty stocks led the decline, losing over 9%, while IT stocks rallied with a 3.57% gain. Despite the market's volatility, experts suggest that the ongoing consolidation phase is nearing its end.
On January 24, the Sensex dropped 329.92 points to close at 76,190.46, while Nifty fell 113.15 points, settling at 23,092.20. For the week, Sensex lost 0.8%, underperforming Nifty, which declined 0.5%. The worst trading day was January 21, with both indices plunging nearly 2%. Although the market recovered some losses on January 22-23, it couldn’t sustain the momentum.
Foreign portfolio investors (FPIs) have been net sellers, withdrawing ₹64,156 crore from Indian equities by January 24. The Indian rupee also remained under pressure, closing near its record low of 86.6 against the US dollar before recovering slightly to 86.188, as the dollar saw its worst weekly fall in two months.
Amol Athawale, VP of Technical Research at Kotak Securities, noted that “benchmark indices continued to face selling pressure at higher levels, with Nifty ending 0.49% lower and Sensex down by 405 points.” He identified key support levels for Nifty at 22,900 and resistance at 23,450.
Vinod Nair, Head of Research at Geojit Financial Services, attributed the bearish sentiment to weak real estate performance and PMI data but highlighted the resilience of large-cap stocks. “The market is now in the final phase of consolidation,” Nair stated, advising investors to remain patient and adopt an accumulation strategy.
Religare Broking’s Ajit Mishra emphasized the importance of upcoming events, including the Union Budget on February 1 and major earnings announcements from companies like Tata Steel, Maruti, and ONGC. “The consolidation appears to be setting the stage for long-term growth, supported by strong economic fundamentals,” Mishra said.
Looking ahead, analysts suggest selective stock-picking and hedged positions as markets navigate heightened uncertainty. Long-term investors are encouraged to leverage this phase for portfolio accumulation, as India's GDP growth is projected to accelerate from 6.4% in FY25 to 7% in FY26.
The Indian stock market closed the trading week from January 20-24 with a bearish tone, as Sensex and Nifty fell by 0.5% to nearly 1%. Realty stocks led the decline, losing over 9%, while IT stocks rallied with a 3.57% gain. Despite the market's volatility, experts suggest that the ongoing consolidation phase is nearing its end.
On January 24, the Sensex dropped 329.92 points to close at 76,190.46, while Nifty fell 113.15 points, settling at 23,092.20. For the week, Sensex lost 0.8%, underperforming Nifty, which declined 0.5%. The worst trading day was January 21, with both indices plunging nearly 2%. Although the market recovered some losses on January 22-23, it couldn’t sustain the momentum.
Foreign portfolio investors (FPIs) have been net sellers, withdrawing ₹64,156 crore from Indian equities by January 24. The Indian rupee also remained under pressure, closing near its record low of 86.6 against the US dollar before recovering slightly to 86.188, as the dollar saw its worst weekly fall in two months.
Amol Athawale, VP of Technical Research at Kotak Securities, noted that “benchmark indices continued to face selling pressure at higher levels, with Nifty ending 0.49% lower and Sensex down by 405 points.” He identified key support levels for Nifty at 22,900 and resistance at 23,450.
Vinod Nair, Head of Research at Geojit Financial Services, attributed the bearish sentiment to weak real estate performance and PMI data but highlighted the resilience of large-cap stocks. “The market is now in the final phase of consolidation,” Nair stated, advising investors to remain patient and adopt an accumulation strategy.
Religare Broking’s Ajit Mishra emphasized the importance of upcoming events, including the Union Budget on February 1 and major earnings announcements from companies like Tata Steel, Maruti, and ONGC. “The consolidation appears to be setting the stage for long-term growth, supported by strong economic fundamentals,” Mishra said.
Looking ahead, analysts suggest selective stock-picking and hedged positions as markets navigate heightened uncertainty. Long-term investors are encouraged to leverage this phase for portfolio accumulation, as India's GDP growth is projected to accelerate from 6.4% in FY25 to 7% in FY26.