The upside momentum continued in the market for the ninth consecutive session on Tuesday and the 30-share index Sensex gained over 2,600 points during this period. This, by far, has been the longest winning streak logged by the benchmark index in nearly two-and half years. Last time, during the nine days of straight gains in 2018, the Sensex had risen 1,376 points between April 05 and April 17.
Meanwhile, the frontline index closed almost flat on October 13, stretching their gains for nine months in a row. "Markets lack the momentum to make sizeable gains from the current levels and look tired in terms of indices," says Deepak Jasani, head of retail research, HDFC Securities.
The markets rallied considerably last week recording over three-fifth of the gains on the back of positive corporate commentaries for the second quarter, accommodative RBI policy measures, some visible green shoots in economic activity and expectations over the economic stimulus from the government.
However, the momentum may reverse in the near-term. According to Vinod Nair, head of research at Geojit Financial Services, "Market may consolidate due to lower than anticipated stimulus package and the large part of the positive Q2 results announced till date is well factored in the prices. The momentum may reverse in a narrow-range, in the near-term, while the undercurrent of the rally is still positive and a break-up is likely based on the continuity of positive results, more fiscal measures in the future and developments in the global market. Today, the banking sector lost some grounds due to adjournment of moratorium hearing to the next day."
So far, the foreign institutional investors have remained net buyers in October with investments of Rs 5,757 crore after pulling over Rs 7,000 crore in September.