Indian stock indices extend gains, touch fresh all-time highs

New Delhi: Continuing with the bull run, Indian stock indices started Monday’s trade marginally higher and touched fresh all-time highs.
Sensex and Nifty were 0.2 per cent higher each at 66,197 points and 19,619 points at the time of writing this report. Sensex reached 66,214 points in early trade today. The consistent inflow of foreign portfolio funds, firm economic outlook, firm global markets, and moderation in inflation contributed to the latest bull run in Indian stocks. 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. In July too, the trend is firm as they bought Rs 30,660 crore worth of equities.
However, several analysts have been pointing out that any further rally from the current levels is unlikely as valuations are on the higher side.
“Investors should remember the fact that from the short-term perspective valuations are stretched,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Last week, after a flattish start, the benchmarks oscillated in the narrow range for most of the week but a strong close in the final session aided the index to end higher.
“Needless to say, the positive tone of the US market is also helping in keeping the upward bias and a breakout above 34,600 in the Dow Jones Industrial Average (DJIA) will further boost the sentiment,” said Ajit Mishra, SVP - Technical Research, Religare Broking.
The constant rise in Indian stock indices was maintained even after the retail inflation data for June showed a considerable uptick.
Bucking the trend, retail inflation in India rose considerably in June to 4.81 per cent, largely due to a sharp spurt in vegetable prices. Besides vegetables, meat and fish; eggs; pulses and products; spices indices too saw an uptick. (ANI)