Indian stocks open Tuesday's session at fresh all-time highs; some profit booking expected
Jul 02, 2024
Mumbai (Maharashtra) [India], July 2 : The Indian stock market opened at a record high with Sensex opening at 79,840.40, above 364 points or 0.46 per cent, and Nifty at 24,228.75, up 86 points or .36 per cent high.
Bank Nifty opened in green at 52,0793, up 219 points or 0.42 per cent high. The Nifty Midcap 100 opened at 56462.70, up 170.20 points or 0.30 per cent. Soon after opening in green, some indices turned red likely due to a profit-booking trend during the opening trade hour.
Among the sectoral indices at the National Stock Exchange (NSE) in the opening hours on Tuesday, the auto stocks opened in red post sales figures for June. The other sectoral indices such as Financial Services, FMCG, Metal, Pharma, PSU Banks, Private Banks, Healthcare, Consumer Durables and Nifty Midsmall Healthcare traded in the red during the initial hours of the trade.
"Nifty has delivered 10.4 per cent returns in the first half of 2024 on top of the 20 per cent returns in 2023. These are impressive returns. An important feature of this bull market which began after the COVID crash of March 2020 (Nifty at 7511) is that it has been devoid of any significant correction. The only above 5 per cent correction in the Nifty was on June 4th, in response to the election results. But this was followed the very next day by a sharp recovery. This one-way move in the market can be attributed to the successful 'buy on dips' strategy being followed by the domestic investors - both institutional and retail, said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
"There is a sustained flow of money into the market through mutual funds, particularly through SIPs. So long as this market construct holds steady, the market will remain resilient. It is worth repeating that some stocks in the broader market have bubble valuations and, therefore, they are vulnerable to a sharp correction," he added.
"We are of the view that the short-term texture of the market is positive but due to temporary overbought conditions, we could see some profit booking at higher levels, said Shrikant Chouhan, Head of Equity Research, Kotak Securities on the market opening.
On July 1, the Indian market benchmarks made a recovery from last week's downturn on Monday, July 1, regaining most of Friday's losses.
The Nifty 50 maintained above 24,000 levels, closing at 24,142 with a gain of 131 points. The Sensex also showed strength, rising by 443 points to end the day at 79,476.
Foreign Portfolio Investors (FPIs) significantly increased their investments in the Indian stock markets in the last week of June, according to data from the National Securities Depository Limited (NSDL).The net investment by FPIs stood at Rs 16,672.2 crore during the last week, with a notable surge on Friday alone amounting to Rs 6,966.08 crore. This uptick marks a turnaround in FPI sentiment for the month.
