Dalal Street Corner: FMCG, energy stocks power benchmarks to end over 1% higher on monthly expiry; what should investors do on Friday?

Fast moving consumer goods (FMCG) and energy stocks powered the Indian markets on monthly expiry day as benchmarks closed with more than one per cent gains on Thursday. Benchmarks Nifty 50 and the Sensex ended higher by more than 1.2% each.  

On Thursday, Nifty FMCG and oil & gas settled with gains of 2.19% and 1.21% respectively. Other notable gainers were Nifty Bank, IT and pharma indices, which gained one per cent or more. However, Nifty Media, which was the only loser on NSE, took severe drubbings as the index closed more than 3% lower.  

In the broader market, midcap and small cap rose by 0.6% and 0.3% in Friday's closing.  

Meanwhile, Foreign institutional investors (FIIs) continued their selling spree, offloading shares worth Rs 4,064.54 crore on Wednesday, according to stock exchange data. 

As market continues to see a range-bound trading, here is what experts have to say about current trends in the market.  

Vinod Nair, Head of Research at Geojit Financial Services 

Investors preference is shifting to safe-haven assets due to volatile equity market and global uncertainties indicated by rising US Dollar index. FPIs are in a selling mode while domestic investors are positive and will focus on defensives like Consumption and domestic growth sectors like Infra & capital goods.  

Volatility is expected to continue in the short-term due to weakening global trade and we suggest investors to have rationale expectations focusing on domestic growth sectors like CAPEX, banking and defensives.  

S Ranganathan, Head of Research at LKP securities. 

Even as the Euro hit a 5 year low against the Dollar, Benchmark Indices on D-Street rose almost 2% in Afternoon Trade before giving up some gains powered by Energy & FMCG stocks with Reliance becoming the first Indian company to cross m-cap of $250bn.  

Even standalone Refineries not part of the Energy Index evinced keen interest on the back of rising gross refining margins. High Quality Midcap names in IT & Agri saw accumulation on the back of good earnings. 

Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities 

The Bank nifty index witnessed some buying from the lower levels on the last expiry of the month. However, the index is still trading below its 200DMA which is placed at the 36800 level.  

In order to resume the uptrend, the index has to cross its 200DMA with volumes. The lower-end support stands at 35800-35700 zone and a breach below this will lead to a fresh round of selling pressure.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services 

A clear trend in markets now, in developed markets as well as in India, is the preference for value stocks over high-priced growth stocks. 

This is partly a reflection of risk aversion among investors in the present context of mounting challenges posed by the expected aggressive tightening by the US Fed and the uncertainties arising from the Ukraine war that is getting prolonged.

Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas

The Nifty has been witnessing sharp swings in both the directions for the last few sessions. Structurally, the recent price action developed in the form of a triangular pattern & the index moved out of the pattern on the upside on April 28. On the higher side, however, the Nifty has a stiff barrier near 17400-17500 zone. Over there the index is expected to attract fresh selling pressure. On the flip side, dips towards 17000 are getting bought into. Thus the index is expected to witness sideways action in the range of 17000-17400 for the short term.

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision)