Shillong, September 14: India’s stock market has emerged as the best-performing large market in September, with a 4.2% increase, according to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
As per IANS, this impressive performance has propelled the Nifty index past the psychologically significant 20,000 mark, accompanied by a noteworthy 4.3% rise in the Bank Nifty.
Given that financials account for 32% of the Nifty’s weightage, the strength in the financial sector, particularly in banking stocks, can bolster the Nifty’s resilience. Furthermore, banking stocks are currently considered to have fair valuations. The strength in this sector can help the market maintain its resilience, even as overall market valuations gradually climb to levels that are approaching discomfort.
In terms of global factors, inflation data from the US presents a mixed picture. While the Consumer Price Index (CPI) inflation for August came in at 3.7% against expectations of 3.6%, core inflation remained in line with expectations at 4.3%. Consequently, the market’s perception is that the Federal Reserve is likely to pause in September.
Vaishali Parekh, Vice President – Technical Research at Prabhudas Lilladher, noted that the Nifty maintained the 19,950 zone and recorded a gradual rise during the intraday session, closing above the 20,000 mark for the first time. This has significantly improved the market’s bias and sentiment, with expectations for further gains in the coming days.
Additionally, the broader markets have rebounded significantly from their lows, providing relief to market participants, and further upward movement is anticipated. Support for the day is seen at 19,950 levels, while resistance is observed at 20,200 levels.
As of Thursday morning, the BSE Sensex was up 26 points at 67,493 points, with Tata Steel rising more than 2%.