Buying in heavyweight stocks pushes Indian markets to all-time high

New Delhi: After multiple attempts, the domestic market successfully managed to sustain record high levels, thanks to the increased buying interest in heavyweight stocks, said Vinod Nair, Head of Research at Geojit Financial Services.

The domestic indices ended the session after hitting fresh all-time highs this week. The NSE Nifty 50 soared 54.70 points or 0.82 per cent to 18,972.10, while the BSE Sensex surged 499.39 points or 0.79 per cent to 63,915.42.

The market’s bullish momentum was further supported by strong FII inflows and a narrowing current account deficit, both of which positively impacted investor sentiments. The gains were widespread, with pharma and metal sectors leading the way as top performers, outshining others, Nair said.

Indian markets are at an all-time high, driven by strong inflows from the FII in the past few months.

Christy Mathai, Fund Manager-Equity, Quantum AMC, said that from a macro standpoint, India stands out as compared to peer countries, with inflation moderating, and investing activity and growth picking up. Also, the growth hurdles of the Indian economy have corrected to a large extent.

Infrastructure has been improving consistently, corporate balance sheet strength has improved, and the financial system is in a robust state to fund the potential growth. Despite the recent rally, fundamentals point to the possibility of strong earnings growth in the medium term, Mathai said.

Valuations around the long-term average makes a strong case for reasonable returns as earnings upcycle gains strength. Investors could be better off by staying invested and maintaining their equity allocation in line with long term asset allocation plans.

The US markets continued the positive data with consumer confidence climbing to highest levels since January 2022, new home sales jumped 12.2 per cent to highest levels since February 2022, and home prices were up 0.9 per cent in April for the top 20 cities in the US.

With monsoon kicking in and the RBI taking a rate pause, the strong momentum in earnings is likely to continue.

Image courtesy of File photo

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