New Delhi [India], December 20 (ANI): Indian stock indices – Sensex and Nifty – hit fresh highs at the opening bell Wednesday, due to a host of factors including a firm economic growth outlook and strong inflow of foreign investments.
The indices had touched their all-time highs last week too.
Sensex was at 71,743.66 points, up 0.43 per cent, while Nifty was at 21,548.95 points, up 0.45 per cent, from their previous day closing, respectively.
India’s benchmark Sensex and Nifty posted their longest weekly winning streak in six years last Friday, extending their rally to record highs, on the possibility of an interest rate cut in the US markets in early 2024. The two indices rose over 2 per cent in the week on a cumulative basis.
The strong inflow of funds from foreign portfolio investors (FPIs) lately also supported the stocks to march towards all-time highs. Notably, foreign portfolio investors have again trained their sight towards India, becoming net buyers in the country’s stock market.
Following a cumulative accumulation of Rs 9,001 crore in November, they have again made a beeline to invest in Indian stock markets, with Rs 54,747 crore invested so far in December, data from the National Securities Depository (NSDL) showed.
The latest inflow comes at a time when India reported strong quarterly GDP growth maintaining its fastest-growing major economy tag, inflation in a comfortable zone, and political stability in the run-up to General Elections 2024. Before November, FPI participation in Indian stocks was lukewarm and they had turned net sellers. They sold Rs 14,768 crore and Rs 24,548 crore, in September and October, respectively.
Foreign investors typically shift to developing or emerging economies to make money when interest rates are relatively low in advanced economies, let’s say here in this case the US.
“Valuations in the mid and small cap segments are excessive. Chasing mid and small caps at these valuations is risky. Going forward, large-caps are likely to outperform. Even if they don’t, safety is in large caps. Investors should give importance to safety in this time of optimism,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Meanwhile, DOMS Industries, a leading Indian stationery player, had a blockbuster stock market debut. It listed on the bourses with a whopping 77 per cent premium over its IPO issue price.
It listed at Rs 1,400 against its issue price of Rs 790.
“Thus, considering such a premium on listing, allottees who applied for the public offering for listing premium are advised to book profit however investors with long-term view may hold it by keeping a stoploss at 1260. A fresh buy will not be recommended at such a high level,” said Shivani Nyati, Head of Wealth, Swastika Investmart Ltd.
Also, India Shelter Limited made its stock market debut today. The stock witnessed an attractive listing at Rs 618, with a premium of around 25 per cent.
“India Shelter boasts strong fundamentals built on years of experience in the affordable housing market. The company has a diverse portfolio and strong distribution network, catering to the growing demand for quality and affordable homes,” Nyati said
“Investors are advised to book this listing gain; however, those who still want to hold it may keep a stop loss at (Rs) 558.” (ANI)
This report is auto-generated from ANI news service. ThePrint holds no responsibility for its content.