The Indian stock market experienced a strong rally on Tuesday, February 21, 2023, with the benchmark Sensex and Nifty indices closing over 1.5% higher. This surge was driven by gains in banking and financial stocks. The S&P BSE Sensex jumped 1,397.07 points to settle at 78,583.81, while the NSE Nifty50 climbed 378.20 points to close at 23,739.25. (Source: The Economic Times, February 21, 2023)
Market experts believe the Nifty index could reach a target range of 23,900-24,200. The banking sector played a crucial role in Tuesday's recovery, and analysts suggest that the market's momentum will depend on the banking index's performance beyond the 50,200 level. (Source: The Economic Times, February 21, 2023)
Ajit Mishra, SVP-Research at Religare Broking Limited, advised investors to focus on selective stock picking, particularly large-cap and large mid-cap stocks. (Source: The Economic Times, February 21, 2023)
Rajesh Bhosale, Technical Analyst at Angel One Ltd., recommended a buy-on-dips strategy, citing its success in recent sessions. He highlighted the Budget Day high of 23,630 as immediate support and the bullish gap near 23,400 as a key demand zone. (Source: The Economic Times, February 21, 2023)
However, Bhosale cautioned that geopolitical tensions and ongoing trade wars could introduce volatility to the markets. Domestic factors, including the RBI's Monetary Policy Committee (MPC) meeting and the Delhi state elections, will also influence investor sentiment. (Source: The Economic Times, February 21, 2023)
Banking stocks have been on the rise ahead of the RBI policy meeting, where analysts anticipate a rate cut. This will be the first policy meeting under the new RBI governor, making it a key event for investors. (Source: The Economic Times, February 21, 2023)
Vinod Nair, Head of Research at Geojit Financial Services, stated that while overall market sentiment remains positive, large-cap stocks are the preferred choice. He also noted the rally in banking stocks in anticipation of a rate cut during this week's RBI policy. (Source: The Economic Times, February 21, 2023)
Defence stocks have shown signs of recovery, driven by strong order books and rising exports. Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, highlighted the sector's strong earnings visibility, citing the increased defence budget of Rs 11 lakh crore (about $2 billion) and exports exceeding Rs 21,000 crore last year. (Source: The Economic Times, February 21, 2023)
Despite high valuations, Bathini believes that defence companies have a clear earnings outlook. He considers them attractive for long-term investors after a 20-30% correction from their peak. (Source: The Economic Times, February 21, 2023)