Extending the gains from the previous session, Indian stock indices rose this morning to hit new life highs.
The strong inflow of foreign funds, the relative strength of the rupee and the hint from the US Fed to cut policy rates supported Indian equity markets.
At the time of writing this report, Sensex was trading at 62,706.73 points, an increase of 201.93 points or 0.32 percent, while Nifty was trading at 18,626.70 points, an increase of 63.95 points, or 0.34 percent.
The minutes of the last US Federal Reserve monetary policy review meeting showed that a substantial majority of members believed that a slowdown in the rate of increase in policy rates would likely be “appropriate soon”.
Coming to foreign funds, they have bought more than Rs 31,000 crore worth of shares in India so far in November, NSDL data showed.
Of the Nifty 50 companies, Apollo Hospitals, Hindustan Unilever, Dr. Reddy’s, Hindalco and Tata Steel are the biggest winners, while Bajaj Finserv, Tata Motors, BPCL, L&T and Maruti Suzuki are the biggest losers, according to National Stock Exchange data.
“Nifty rises to a new all-time high… is an indication of the underlying bullishness in the market. But the global market construction is not very favorable for the rally to continue unabated. The high valuation in India is also becoming a concern ,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“Bank stocks can remain resilient despite record levels. Comments and indications about the trajectory of US interest rates are likely to impact global stock markets more than anything else.”
According to Dhiraj Relli, MD and CEO of HDFC Securities, “Indian market undertones remain optimistic despite global headwinds. Indian markets could continue to thrive with some periodic corrections until the upcoming Union budget.”
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