Indian stocks were largely steady Thursday morning as investors seemed to be holding back from putting more money into the markets in the short run. The stock indices have been hitting their all-time highs and are at their peaks currently.
Benchmark Sensex and Nifty were just 0.1 per cent at the time of writing this report. Last week, the indices accumulated around 3 per cent gains each, their highest in months, and hit their fresh all-time highs. Notably, Sensex crossed the 65,000 mark for the first time this week.
The consistent inflow of foreign funds, firm economic outlook, and moderation in inflation supported Indian stocks recently.
Foreign portfolio investors (FPIs) have remained net buyers in Indian stock markets for the fourth 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.
“An important trend in the market is the surge in retail investor participation as indicated by the sharp increase in new demat accounts ( 2.36 million) opened in June. New retail investors jumping on to the market bandwagon normally happens at the peak of a rally. This is a sign for caution,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“Two-wheeler sales in June indicate that demand continues to be a problem in rural areas. In brief, the macroeconomic scenario, though good, is not so bullish as to warrant continuation of the rally, which has already run a bit ahead of fundamentals.” (ANI)
