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As soon as the bell rang on Mumbai’s Dalal Street on Tuesday morning, there was a slight glow of relief in the atmosphere. On the second trading day of the week, Sensex rose by 300 points and reached above 82,098, while Nifty touched the level of 25,150. On the surface everything appeared stable, but experts say – this surge is not as straightforward as it seems.

There was a rise in the morning, but investors are still cautious

• 23 out of 30 Sensex stocks remained in the green. Strong buying was seen in companies like Tata Steel, Larsen & Toubro, and Bajaj Finance.
• On the other hand, Trent’s shares fell by more than 2%. In Nifty too, 39 shares rose and 11 declined.
• Metal, pharma, banking and realty sectors were seen pulling the market today, while decline in media, private banking and financial services tried to apply brakes.

Foreign investors retreated, domestic players took command

Data shows that on October 6, foreign investors (FIIs) sold shares worth Rs 313.77 crore, while domestic investors (DIIs) made net purchases of Rs 5,036 crore. While FIIs sold Rs 35,301 crore in September, DIIs made huge purchases worth Rs 65,343 crore. The trend was the same in August too – foreign capital out, domestic confidence in.

Mixed trend in global market

Mixed movements were seen in the markets of Asia today. Japan’s Nikkei is trading 0.67% higher at 48,265, while the markets of Hong Kong and Korea are closed for holidays.

China’s Shanghai Composite will also remain closed till October 8 due to the Mid-Autumn Festival. In the US on Monday, Dow Jones gained 0.14%, Nasdaq gained 0.71%, and S&P 500 gained 0.36% – meaning global sentiment is currently balanced.

Yesterday’s rise had created expectations

The market performed brilliantly on Monday, the first trading day of the week – Sensex rose 583 points to 81,790, and Nifty closed 183 points higher at 25,078.

IT, banking and healthcare sectors had registered gains of up to 2.3%, although media and metal stocks were a bit disappointing by closing with losses.

But the question remains: is this relief real or just a flicker?

There is excitement in the market before the beginning of the festive season, but according to analysts, investors are still cautious. The softening of gold prices and stability of the dollar index have provided some relief, but interest rate signals and international instability are still looming.

Perhaps this is the reason why old market players are considering today’s rise not as a “classic pre-festive rally” but as “the lull before the possible storm”.