As the major indices, the Sensex and Nifty, reached new record highs on Friday, the bullishness in the Indian stock markets persisted. At the time this post was being written, the Sensex and Nifty were up 0.6-0.7% from Wednesday.
The Sensex is currently trading at 64,312 points after passing the 64,000-point threshold. The last time the Indian stock indices, the Sensex and Nifty, reached all-time highs was on Wednesday. Experts attribute this to good economic indicators like a solid GDP projection, controlled inflation, and robust foreign investor purchases.
Due to Bakri Eid (Eid-al-Adha), Indian stock exchanges were closed yesterday. Regular trade will resume on Friday. Next, on August 15, Indian stock exchanges will be closed in observance of Independence Day.
“The momentum in the market has picked up again and the undercurrent has the potential to take the benchmark indices to new highs. The global support to the bullishness is coming from the mother market US where the market is resilient supported by better-than-expected Q1 GDP growth of 2 per cent and declining weekly jobless claims,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The route that India and the global market will take in the future will depend on the June vehicle sales figures, Q1 company results, the progress of the monsoon, and the US Fed’s attitude on monetary policy.
However, Vijayakumar pointed out that market valuations are high right now and advised investors to proceed cautiously. Inflation is also decreasing in the US and India, although it remains to be seen whether this trend will continue in the future.
