Indian stocks rise marginally to touch fresh highs
Jul 18, 2023
New Delhi [India], July 18 : Indian stock indices extended their gains from the previous session and touched fresh highs on Tuesday.
Sensex and Nifty were 0.2-0.3 per cent higher each this morning. Sensex and Nifty’s fresh highs are 66,746 points and 19,751 points.
Among the Nifty sectoral indices, Nifty bank, Nifty private bank, and Nifty oil and gas were the top gainers, NSE data showed.
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 fifth 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.
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.
Meanwhile, several analysts have pointed out that any further rally from the current levels is unlikely as valuations are higher.
“The global market construct continues to be favorable for the bulls. The declining dollar and the capital flows to emerging markets that it triggers can impart resilience to the market,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“However, high valuations and possible profit booking can restrain the rally. A healthy consolidation can be the near-term trend,” Vijayakumar added.
Meanwhile, other Asian stocks traded mixed on Tuesday as China’s sluggish economic recovery triggered growth forecast cuts and a warning from US Treasury Secretary Janet Yellen that it could cause ripple effects across the global economy, HDFC Securities said.
