Indian markets continue upward momentum, to scale new heights

Indian inventory markets on Monday continued to hit new heights with the Sensex of BSE touching a excessive of 65,247.74 factors and Nifty of NSE 19,336.10 factors.

The Sensex opened at 64,836.16 factors and raced up to attain a 52 week excessive of 65,247.74 factors. On Friday the Sensex had closed at 64,718.56. factors.

At the NSE, the Nifty opened at 19,246.50 and flared up to a 52 week excessive of 19,336.10 factors.

As the Sensex scaled 65,000 on Monday led by Reliance Industries, Indian markets have been scaling new highs led by large FII shopping for.

Reliance high gainer

Reliance was the highest gainer in Sensex up by 2.32 per cent. HDFC twins and SBI amongst monetary shares had been among the many predominant gainers.

V Ok Vijayakumar, Chief Investment Strategist at Geojit Financial Services mentioned the continued rally in world inventory markets is primarily pushed by the stunning and surprising power of the US financial system ( 2 per cent GDP development in Q1 23), despite the savage 500bp charge hike by the Fed.

Global markets which had discounted a US recession by mid 2023 have been proved incorrect and the markets are actually compensating for the extreme pessimistic discounting in 2022, he mentioned.

He added that an vital level of distinction between the rally in US and in India is that the US rally is primarily being led by eight tech shares whereas the Indian rally is extra broad based mostly. Sustained FPI flows (Rs 47148 crore in June) is the primary driver of the rally in India.

The current surge in FPI inflows have been triggered by the current ‘Sell China, Buy India’ technique of the FPIs which, in flip, is being influenced vastly by the anti-China angle/coverage evolving within the US and the developed world.

Since the power of the market momentum is excessive, the rally can continue however valuations are getting stretched, he added.

(With inputs from IANS)