By Gaurav Garg, Research Analyst at Lemonn Markets Desk
The benchmark indices commenced SAMVAT 2081 on a positive note, with the special Diwali muhurat trading session on Friday yielding broad-based gains. Mid and small-cap stocks also participated in the rally.
Auto stocks stole the show, driven by robust October sales updates. The shares of Mahindra & Mahindra (M&M), Tata Motors, Bajaj Auto, Hyundai Motor, and Maruti Suzuki India rose upto 3%, leading the gains. M&M reportedly recorded 54,504 SUV sales in October, marking a 25% year-over-year (YoY) increase.
All major sectors showed gains, with Realty, Consumer Durables, and Energy leading the pack. Performances of the Finance and IT sectors lagged.
Strong festive sales updates from automakers alleviated concerns over the slowdown in festive demand, following a disappointing Q2 earnings season. The market focus remains on upcoming earnings announcements.
Investors will closely watch the US election outcome next week, which could influence market sentiment.