New Delhi [India], July 17 : Indian stock indices extended their gains from the previous week started and traded on a firm note on Monday. The benchmark indices yet again touched fresh all-time highs.
Sensex and Nifty settled 0.8 per cent higher each at 66,589.93 points and 19,711.45 points. Sensex touched its all-time high of 66,656.21 points in early trade today.
Among the Nifty sectoral indices, Nifty bank, Nifty financial services, Nifty media, Nifty PSU bank, and Nifty private bank were the top gainers.
“The sharp surge in the banking index after a pause in the IT pack reaffirms our bullish view and we are eyeing Nifty to gradually inch towards a new milestone i.e. 20000 mark. Traders should maintain their focus on stock selection based on the sectoral trend and look for buying opportunities on dips,” said Ajit Mishra, SVP - of Technical Research, at Religare Broking.
The consistent inflow of foreign portfolio funds, firm economic outlook, firm global markets, and a relative moderation in inflation contributed to the latest bull run in Indian stocks. Foreign portfolio investors (FPIs) have remained net buyers in Indian stock markets for the fourth straight month, according to data from the National Securities Depository (NSDL).
FPIs bought Indian stocks worth Rs 7,936 crore, Rs 11,631 crore, Rs 43,838 crore, and Rs 47,148 crore in March, April, May, and June, respectively, data showed. In July too, the trend is firm as they bought Rs 30,660 crore worth of equities.
However, several analysts have pointed out that any further rally from the current levels is unlikely as valuations are higher.
“Investors should remember the fact that from the short-term perspective valuations are stretched,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Last week, after a flat start, the benchmarks oscillated in the narrow range for most of the week but a strong close in the final session aided the index to end higher.
The constant rise in Indian stock indices was maintained even after the retail inflation data for June showed a considerable uptick.
Bucking the trend, retail inflation in India rose considerably in June to 4.81 per cent, largely due to a sharp spurt in vegetable prices. Besides vegetables, meat and fish; eggs; pulses and products; spices indices too saw an uptick.
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