Indian markets continued their upward trend on Friday, reaching new highs with the Nifty index touching a peak of 23,667.10 and the Sensex gaining 200 points. The Nifty 50 index rose by 70 points to reach 23,640, while the Sensex climbed to 77,674 points in early trading. The positive momentum was seen across all market indices, including Nifty Midcap, Nifty Small Cap, and Nifty 100. However, sectoral indices such as Nifty Bank, Nifty Auto, Nifty Financial Services, Nifty FMCG, Nifty Private Bank, and Nifty Realty faced losses.
Market expert Ajay Bagga highlighted the soft closing of US markets after seven days of gains with some selling in Big Tech stocks. Despite this, the overall momentum is positive, with anticipation building for the Lok Sabha Speaker election and expectations regarding the upcoming Union Budget, which are expected to be key drivers for the Indian markets. Bagga suggested a potential run-up in sectors that would benefit from public capex initiatives, such as capital goods, infrastructure, and banks. Defence and railways stocks, which have already seen significant gains, may witness some profit-taking in the near future.
Foreign Institutional Investors (FIIs) have been selling stocks across various sectors in the Indian market, including oil & gas, construction, IT, metals & mining, consumer durables, auto, and FMCG, as per NSDL data from the initial two weeks of June. Despite the lack of significant triggers for aggressive buying or selling, the market is currently in a consolidation phase. Investors remain optimistic, viewing dips as buying opportunities and helping maintain market resilience. However, sharp upward movements could lead to profit-taking and potentially limit sustained rallies, according to Varun Aggarwal, MD of Profit Idea.
In other Asian markets, Japan’s Nikkei 225 saw a rise of 0.16 per cent, while South Korea’s Kospi declined by 0.78 per cent on Friday. The broader Asia Dow was marginally higher by 0.015 per cent, contrasting with Hong Kong’s Hang Seng, which fell by 0.52 per cent, and China’s Shanghai Composite, which was down by 0.04 per cent. Despite these fluctuations, the positive performance of Indian markets and the overall bullish sentiment suggest continued investor interest and potential for further growth in the coming weeks. Investors are advised to stay informed about upcoming events and market trends to make informed decisions and capitalize on opportunities in the dynamic financial landscape.
