Indian stock indices opened higher on Tuesday, reaching fresh all-time highs. The Sensex and Nifty were both up by 0.2 percent in early trading, with the Sensex surpassing the 65,000 mark for the first time this week. Last week, the indices saw gains of around 3 percent, their highest in months.
The surge in foreign portfolio investors (FPI) inflows has contributed to the market’s resilience. FPIs have been net buyers in the Indian stock market for the fourth consecutive month, according to data from the National Securities Depository. In March, April, May, and June, FPIs bought Indian stocks worth a total of Rs 7,936 crore, Rs 11,631 crore, Rs 43,838 crore, and Rs 47,148 crore, respectively.
The surge in the market during the last four sessions was led mainly by the HDFC twins and RIL, with some support from ITC. It is important to remember that these stocks have strong and improving fundamentals, said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. However, he cautioned investors against excessive optimism, as valuations do not support an unabated rally.
Om Mehra, Equity Research Analyst at Choice Broking, suggested that while the market may consolidate, stock-specific movement is likely to persist. He advised investors to remain cautious and avoid taking aggressive long or short positions.
In conclusion, the Indian stock market continues to soar to new heights, fueled by strong FPI inflows and the positive performance of key stocks. While optimism is present, experts advise caution due to valuation concerns. As the market consolidates, investors must remain prudent in their decision-making.
