Shillong, June 21: Despite cautious global cues, the BSE Sensex reached a fresh all-time high of 63,588 on Wednesday. Although Nifty attempted to touch new highs, it fell short by 12 points. The index ultimately closed with a 40-point gain at 18,857 points, according to Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services.
In terms of sectors, it was a mixed bag, with significant buying observed in financial services, particularly NBFCs. Strong macroeconomic data and consistent foreign inflows into Indian equities have instilled confidence in investors, Khemka noted.
Vinod Nair, Head of Research at Geojit Financial Services, pointed out that despite reaching record highs, the domestic market struggled to sustain its upward momentum due to concerns over global issues and a delayed monsoon.
The market volatility was further fueled by consecutive days of net selling by FIIs, while mid-cap stocks maintained their steady gains.
Jaykrishna Gandhi, Head of Business Development, Institutional Equities at Emkay Global Financial Services, highlighted that the Indian markets continued their resilient and steady movement, with the market breadth expanding and small and mid-caps reaching new highs.
Flows into India remain strong, with year-to-date flows amounting to $5.5 billion as of Monday. The RBI and the Fed’s decision to pause, in line with expectations, aligns with the directional movement of inflation in both the US and India.
Gandhi noted that the weakness in crude prices, despite the Saudis implementing a second production cut, raises concerns about global economic health in the latter half of 2023. However, this situation benefits India as it helps keep inflation low.
While the flurry of block deals and increased demand for most offerings may raise some near-term concerns, Gandhi stated that none of the indicators currently point to an overbought market.