Sensex hits fresh all-time high, Nifty shy of its lifetime peak; where is the domestic share market headed?

Produced by: Harshita
Designed by: Mohsin Shaikh

The Sensex has reached a new high, breaking above the 63,583.1 mark set on December 1, 2022. The domestic benchmark index hit a fresh all-time high of 63,588.31 in intraday trade today

Sensex at fresh record high

Factors such as robust GDP print, encouraging high-frequency data, and the bullish stance of foreign investors helped the 30-share index scale the fresh lifetime peak

What's pulling
benchmarks higher?

Nifty has inched closer to its lifetime high of 18,887.60. The index is 15-odd points shy of touching its peak. The 50-share index hit an intraday high of 18,875.90 on Wednesday

Nifty shy of record high

Share market experts believe that economic growth reflected in market performance is due to India faring well on the economic and corporate balance sheets, which is reflected in the consumer balance sheet. There has also been a revival of the investment cycle

Indian share market view

Foreign institutional investors (FIIs) have invested a whopping Rs 80,900 crore in the June quarter of 2023, in a major turn-around from the Rs 24,780 outflow in the previous quarter, according to data from the Centre for Monitoring Indian Economy (CMIE). The inflow of funds from domestic institutional investors was Rs 30,400 crore in the March quarter, underscoring their continued confidence

FII inflow strong

According to share market analysts, the momentum of markets is being driven by expectations of superior long-term growth. As long as India can deliver on earnings, governance, and green transformation, indices will continue to deliver. They believe that softening of commodity prices augurs well for future corporate earnings

Share market outlook

According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the market is slowly stretching both ways, without any sharp up or down moves. However, the broad market trend is up

Market uptrend intact

"Globally markets are bullish even when global growth is sluggish. The reason for this bullish trend is that the US recession, which markets had discounted last year,  didn’t happen and there are indications that the US might avoid a recession. So, markets are correcting the wrong discounting of last year," Vijaykumar said

Markets correcting
wrong discounting

"In India, there is a big action in mid and small-caps and this is likely to continue. Even though valuations are rich, there is value in large-cap banking stocks that have corrected. Leading indicators, particularly the sustaining credit growth, augur well for high-quality banking stocks. The big wall of worry for the bulls is the dismal performance of the monsoon showing deficiency over 50% till 15th June," said V K Vijayakumar, Chief Investment Strategist at Geojit

Banking stocks likely
to do well

Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today. Investors should consult their financial advisors before taking any position

Disclaimer