Major cities will observe a bank holiday on November 18, 2024, in honor of Kanakadasa Jayanti. Will the Indian stock market operate on Monday or will it be closed? The Indian stock market has experienced six consecutive bearish trends. Sensex and Nifty experienced a decrease of 2.3% to 2.5% last week.
According to the holiday schedule of BSE and NSE, November 18 will be a regular trading day in the stock market. Therefore, the trading of equity, equity derivatives, derivatives, currency, commodities, bonds, and the SLB market will proceed as usual.
The market is anticipated to seek enhancement following a week characterized by heavy bearish activity. Significantly, Sensex and Nifty might experience an increase following the decision by global brokerage CLSA to change its strategic allocation from China to India, signaling a shift in focus. CLSA is focusing more on the Indian market due to the trade war escalation expected with Donald Trump’s return to the White House. CLSA has reported that they are significantly increasing their investment in India by 20%.
Performance of Stock Market
After a intense week of declining prices, it is anticipated that the market will seek progress. Significantly, Sensex and Nifty could experience a boost as CLSA, a global brokerage, has reversed its previous tactical allocation shift from China to India, influencing their movement. CLSA is favoring the Indian market more due to the trade war escalation anticipated with Donald Trump’s comeback to the White House. CLSA has stated that they are 20% overweight on India.
In its most recent report, CLSA describes India as a ‘Pouncing Tiger’ and characterizes China as a ‘Prevaricating Dragon’. Trump’s victory in the 2024 US election is leading to increased yields and inflation expectations, reducing the Federal Reserve’s ability to make interest rate cuts. As a result, the People’s Bank of China (PBOC) is likely to adjust its policy stance.
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CLSA reports that India has one of the lowest levels of vulnerability among regional markets to the negative effects of Trump’s trade policies. Additionally, as long as energy costs are stable, India could provide a period of FX stability amidst a strengthening US dollar.
Thus, CLSA has revealed a 20% overweight position on India.
According to Vinod Nair, the Head of Research at Geojit Financial Services, it seems that the underwhelming performance of domestic Q2 earnings has already been taken into account during the consolidation of the past 1-2 months. The market will anticipate growth in domestic business and economic data due to the expected increase in government spending following reductions during national and state elections.
