The Sensex and Nifty Indian stock indices reached new highs on wednesday. At the time of writing, the indices were more than 1% higher.
The Sensex reached a high of 63,601.71 points, while the Nifty reached a low of 18,887.60 points. Indian market indices, which have been rising in recent sessions, also reached new highs last wednesday. The rise in domestic stocks is in tune with the global market rally and firm domestic macro fundamentals. Strong fundamentals including a firm GDP outlook, moderate inflation and strong purchases by foreign investors saw the markets trading in the green.
The inflation in the US and India is moderating, but what is to be seen going ahead is whether this trend is sustainable.
“U.S. stocks ended higher tuesday, led by mega tech stocks, with data suggesting the economy remains resilient despite higher interest rates as investors approach the end of the second quarter and the first half of the year,” said Deepak Jasani, Head of Retail Research, HDFC securities.
According to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the high market valuation, however, continues to be a concern for domestic markets in the near term.
“Investors can book some profits at record highs,” Vijayakumar suggested.
It is to be noted that Indian stock markets were to remain closed today on account of Bakri Eid (Id-Ul-Zuha), but has been rescheduled for thursday. The National Stock Exchange and the Bombay Stock Exchange issued circulars in response to the Maharashtra government’s notification on the change in the Eid holiday, which was issued on Monday.
The Indian stock exchanges will be closed on August 15 for Independence Day celebrations.