Strong showing by auto, tech stocks drives Sensex to fresh highs

Auto and IT stocks are within the limelight because the BSE Sensex traded up greater than 500 factors on Friday. The Sensex is nicely previous the 64,000 mark and breaching new highs on robust world cues.

Among the Sensex stocks, M&M and Indusind Bank had been up greater than 3 per cent. Sun Pharma, Infosys, Maruti, TCS had been up greater than 2 per cent every.

Since valuations are wealthy from the short-term perspective some revenue reserving will be thought-about by traders who would not have a long-term time horizon, says V. Okay. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Investors ought to stay invested available in the market. Long-term traders can proceed with their systematic investments. High high quality financials are even now buying and selling at honest valuations, he added.

The momentum available in the market has picked up once more and the undercurrent has the potential to take the benchmark indices to new highs. The world assist to the bullishness is coming from the mom market US the place the market is resilient supported by better-than-expected Q1 GDP progress of two per cent and declining weekly jobless claims, he mentioned.

This resilience of the US economic system, which was not anticipated and discounted by the market, is the strongest pillar of assist for the worldwide markets now.

In July the market development will probably be influenced by auto gross sales numbers in June, Q1 outcomes, progress of the monsoon and the Fed fee choice and commentary by month finish.

Market valuations are wealthy now, and due to this fact, traders ought to train some warning, he added.

(With inputs from IANS)