Sat Nov 30 05:13:00 UTC 2024: ## Indian Stock Market Rebounds After Sharp Losses, but Volatility Persists

**MUMBAI, INDIA** – India’s stock market staged a significant intraday rebound on Friday, November 29th, recovering almost a percent after suffering a 1.5% drop the previous day. The Sensex closed at 79,802.79, up 759 points (0.96%), while the Nifty 50 gained 217 points (0.91%), settling at 24,131.10. Midcap and Smallcap indices also saw gains. The overall market capitalization increased by approximately ₹3.5 lakh crore, adding to investor wealth.

Despite the recovery, experts warn of continued volatility in the short term. The recent downturn has been attributed primarily to selling by Foreign Institutional Investors (FIIs) fueled by weak Q2 earnings, heightened geopolitical tensions, and concerns about high valuations compared to global markets. The strengthening US dollar, partially linked to Donald Trump’s return to power, further contributed to FII uncertainty. Experts remain perplexed by the recent erratic FII activity, characterized by periods of buying followed by large-scale selling.

Additional headwinds include uncertainty surrounding US interest rate trajectories and a slowdown in corporate earnings. While some analysts believe the market is in a corrective phase, suggesting investors book profits on any rise, others point to potential value opportunities for long-term investors. Specific sectors recommended for investment include those catering to the rural economy, given improved monsoon seasons and subsidies, and the pharma/healthcare and banking sectors.

Technical analysts offer mixed signals. While some see potential for further recovery based on Fibonacci retracement levels and momentum indicators, others caution about the volatile market conditions, suggesting level-based trading strategies and a close watch on key support and resistance levels. The 24,000 mark on the Nifty 50 is identified as a crucial trend decider.

While the market’s short-term trajectory remains uncertain, several experts advise a long-term investment strategy, particularly focusing on large-cap stocks in financials, IT, capital goods, and telecom. However, investors are urged to consult financial advisors before making any investment decisions.

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