New Delhi [India], August 1 : Indian Indices continue to rise as seen at the time of market opening on Tuesday.
The BSE Sensex increased 89.62 points (66,608.20) up by 0.11 per cent whereas Nifty increased 14.45 points (19,772.75) up by 0.096 per cent at the time of writing this article.
Out of Nifty firms, 31 were seen in green and 19 were in red whereas 1 remained unchanged. Hindalco, NTPC, TATA Motors, Tech Mahindra, and JWS Steels were the top gainers, whereas Powergrid, UPL, Maruti, ONGC, and Bajaj Finserv remained in the top losers' list at the time of market opening.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said “The resilience of the mother market US, where the rally is spreading to the broader market, is supporting global markets.”
“But the rally is stretching valuations beyond comfort levels. Sensex is now trading at 25 times trailing one-year earnings. It is important to note that the rally is driven by PE expansion, not commensurate earnings growth. The FY 24 Q1 earnings growth is muted except in banking and refineries. Results indicate that rural demand is yet to pick up in a meaningful manner,” Vijaykumar said.
“Even though the Indian economy is in a sweet spot and it makes sense to remain invested, investors should be cautious in their fresh investment, particularly in chasing low-grade small-caps,” he said.
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