Market players said the Brexit
deal will help end the uncertainty for these companies.
“Most India stocks had fallen a lot and Brexit
deal has had some sentimental impact to boost investors’ confidence. Companies with exposure to Europe will benefit due to the Brexit deal on valuations,” said Chokkalingam G, founder and managing director at Equinomics Research & Advisory.
The Indian markets
have been making positive strides, thanks to positive buying by foreign portfolio investors. In the past four sessions, they had pumped in over Rs 10,000 crore into domestic stocks. On Thursday, they bought shares worth Rs 1,159 crore, while their domestic counterparts were net-sellers to the tune of Rs 512 crore.
Market players said the overseas investor sentiment has improved as some of the global headwinds have receded.
“Two major concerns for the global economy have been the trade skirmishes between the US and China and a ‘no-deal Brexit’. Early indications are that a Brexit deal has been done. This augurs well for the global economy. If the US-China trade deal also happens, that will be very good news
for the global economy,” said V K Vijaykumar, chief investment strategist, Geojit Financial Services.
The market had started October on a weak footing as investors, concerned over the health of the financial sector, were pulling out of equities. Several shares in the banking and non-banking finance space had seen huge price correction. Some of these stocks rebounded on Thursday as investors judged recent losses as excessive. YES Bank rose 15.2 per cent, IndusInd Bank rose 5 per cent, and State Bank of India gained nearly 4 per cent. Besides the front line stocks, several stocks in the mid- and small-cap space have gained in the past few sessions. Market experts say investors’ risk appetite has improved.
“Risk-taking ability is improving in the market, with optimism over recovery in the economy led by stimulus, festive demand, good monsoon, and lower interest rate,” said Vinod Nair, head of research, Geojit Financial Services.