New Delhi [India], June 28 : Indian stock indices - Sensex and Nifty - yet again touched their all-time highs Wednesday, with experts attributing it to strong economic parameters including a firm GDP outlook, moderate inflation and strong purchases by foreign investors.
The indices - Sensex and Nifty were about 1.5 per cent higher each at the time of writing this report. Sensex was almost 1,000 points higher.
So far in 2023, Sensex and Nifty rose over 4 per cent each, data showed.
Dhirendra Kumar, Chief Executive Officer of Value Research, an independent investment research firm which offers data, analysis and opinion on a range of financial assets, said the primary reason for the stock markets rallying to their highs could be attributed to the optimism about India's future.
"India is an island of growth as you look at it in the global context," said Kumar.
Talking to ANI, Kumar said that people pulled out money from India and put it in the US for stable returns
"(But) now they are regretting because India is the only market which proved to be resilient," he added.
"All kinds of investors (are) putting money, ...companies are making more money the earning has started growing. We have a very positive outlook for domestic companies," he noted, however, cautioning investors to not commit big mistakes seeing the market momentum.
"Don't believe in speculation. If you don't have a plan, make a plan whereby you will be investing in equity in a steady manner. Don't invest with the mindset that you have to take your money out the moment it goes up. You make a long-term plan. Be an investor, not a speculator."
According to Ravi Singh, Head of Research, Share India, enough forex reserves (which can cover import bills for months) and moderating inflation have driven the domestic stock markets.
"This rally in Sensex and Nifty will continue as the fundamentals are strong," Singh noted.
The inflation in the US and India is moderating, but what is to be seen going ahead is whether this trend is sustainable.
It is to be noted that Indian stock markets were to remain closed today on account of Bakri Eid (Id-Ul-Zuha), but it has been rescheduled for Thursday. The National Stock Exchange and Bombay Stock Exchange put out circulars in line with the Maharashtra government's notification released on Monday regarding the change in the Eid holiday. Indian stock markets will remain closed next on August 15 for Independence Day celebrations.
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