Indian Markets Close Steady as Muhurat Trading Begins for Samvat 2082

Indian stock indices concluded a special one-hour Muhurat trading session on October 22, 2023, marking the start of Samvat 2082. The main indices, the Sensex and Nifty, remained largely flat, while broader midcap and smallcap markets experienced gains. The Nifty closed at approximately 25,868.60, reflecting an increase of 25.45 points or 0.10 per cent. The Sensex ended slightly higher at 84,426.34, up 62.97 points or 0.07 per cent.

During the session, which took place from 13:45 to 14:45 local time, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) saw the BSE Midcap index rise by 0.3 per cent and the Smallcap index advance by 1 per cent. Among Nifty stocks, notable gainers included Cipla, Bajaj Finserv, Axis Bank, Infosys, and M&M. Conversely, Kotak Mahindra Bank, ICICI Bank, Bharti Airtel, Max Healthcare, and Asian Paints were among the day’s losers.

Market Outlook for Samvat 2082

Experts have indicated that after a year of significant volatility and modest returns, Indian markets may be transitioning out of a consolidation phase. Ajay Bagga, a banking and market expert, stated that the period from last Diwali to this one was marked by external challenges, including geopolitical tensions and aggressive outflows from Foreign Institutional Investors (FIIs), totaling nearly USD 15 billion year-to-date. Despite these hurdles, Bagga expressed optimism for Samvat 2082, predicting a stronger performance driven by domestic fundamentals.

“The new Samvat year is poised for a stronger, more stable performance than the last, with a gradual but sustained upside,” he remarked. Bagga projected that the Nifty could reach 30,000 by the next Diwali, while the BSE Sensex may target levels around 95,000.

The Muhurat trading session traditionally encompasses all market segments, including equity, commodity derivatives, currency derivatives, equity futures and options, and securities lending and borrowing. This auspicious hour is believed to bring good returns for investments made during this time, leading to high trading volumes as numerous orders are placed.

Yearly Performance and Future Expectations

The past year has been eventful for Indian capital markets, characterized by heightened volatility and a largely flat performance, with the Nifty hovering around the psychological mark of 25,000. External factors such as geopolitical issues, tariff wars, and changes in global economies have played significant roles in market dynamics. On the domestic front, however, macroeconomic indicators have shown improvement, with inflation below 3 per cent, a contained fiscal deficit, and a healthy GDP growth rate of 7 per cent.

Market performance has also been impacted by consolidation in corporate earnings, although initial reports for FY26 indicate positive growth, with first-quarter earnings anticipated to rise by 6.6 per cent year-on-year. Full-year expectations suggest an overall growth of 8.2 per cent. Recent reforms, particularly the GST 2.0, have been viewed as a positive catalyst that may enhance corporate earnings in the latter half of FY26.

As the festive season unfolds, the key near-term trigger will be the real demand growth across consumer categories, spurred by the GST rate cut and potential trade agreements, such as a prospective US-India trade deal. Analysts forecast corporate earnings to grow at a compound annual growth rate (CAGR) of 12 per cent from FY25 to FY27, with expectations of double-digit growth resuming from FY27 onwards.

The positive outlook is also supported by increased consumer purchasing power resulting from income tax and GST rate reductions, alongside the government’s focus on boosting manufacturing through policy reforms. As the market prepares for the coming year, many investors remain hopeful for improved returns based on these evolving economic conditions.