A day after Indian stock market benchmarks suffered heavy losses of about 1.5%, Sensex and Nifty 50 rebounded strongly, showcasing resilience amid volatile global and domestic conditions. Both indices rose by almost 1% intraday on Friday, November 29, with the Sensex hitting 79,848.76 and the Nifty 50 climbing to 24,144.45.

This recovery brought a much-needed sigh of relief to investors, as broader indices such as the BSE Midcap and Smallcap indices also gained approximately 0.5% each. The cumulative market capitalization (m-cap) of BSE-listed companies surged to ₹446 lakh crore, up from ₹443 lakh crore the previous day, resulting in a wealth increase of around ₹3 lakh crore for market participants.

Sectoral Performance

The sectoral indices reflected a mixed performance, with pharmaceuticals and infrastructure sectors leading the rally while some financial and realty indices underperformed. Below are the key highlights:

Top Gainers:

1. CNXPHARMA: The sector emerged as the biggest gainer, climbing 2.12%, which translates to a 461.70-point increase.
2. CNXINFRA: Gained 1.19%, adding 102.55 points as investors showed renewed interest in infrastructure stocks.
3. CNXMEDIA: Rose 0.82%, a growth of 16.15 points, supported by optimism in the media sector.

Moderate Performers:

1. CNXCOMMODITIES: Increased 0.77%, benefiting from firming global commodity prices.
2. CNXCONSUMPTION: Advanced 0.72%, with consumer stocks showing stable demand.
3. CNXAUTO: Posted a 0.69% gain, or 159.40 points, as auto stocks witnessed improved buying.

Lagging Sectors:

1. CNXFINANCE: Declined by 0.09%, losing 21.50 points due to cautious sentiment in financials.
2. CNXMIDCAP: Fell 0.28%, reflecting mixed investor confidence.
3. CNXREALTY: Dropped 0.85%, shedding 8.70 points amid pressure on real estate stocks.
4. CNXPSUBANK: Saw the sharpest decline of 1.34%, losing 91.50 points, weighed by banking sector concerns.

Expert Insights:

Market experts have highlighted the importance of diversification and sectoral rotation strategies to navigate the ongoing volatility. The following approaches are recommended:

1. Invest in Defensive Sectors: Given the strength seen in pharma and consumption sectors, these areas may provide stability during turbulent times.
2. Keep an Eye on Global Cues: External factors such as interest rate policies, crude oil prices, and geopolitical developments will continue to influence market trends.
3. Rebalance Portfolios: Experts advise shifting towards midcap and smallcap stocks selectively, as these categories often present growth opportunities during rebounds.

Broader Market Outlook

While Friday’s recovery offers relief, market participants should remain cautious. Analysts believe that volatility is expected to persist in the short term due to macroeconomic uncertainties and global market cues. However, the long-term growth trajectory remains intact, underpinned by strong corporate earnings and domestic economic recovery.

For retail investors, the key takeaway is to avoid panic selling during market corrections and focus on long-term wealth creation strategies. Consistent SIP investments and allocation to well-performing sectors like pharma, IT, and infrastructure can help maximize returns.

Disclaimer: This article is for informational purposes and does not constitute investment advice. Always consult a financial advisor before making investment decisions.

The Upcoming IPOs in this week and coming weeks are Property Share REIT, Rosmerta Digital, Avanse Financial and Nisus Finance.

The Current active IPO is Ganesh Infraworld, Suraksha Diagnostic, Agarwal Toughened, Apex Ecotech, Abha Power and Steel.