New Delhi: Indian market indices continued their bull run on Monday, opening slightly higher and reaching new records. When this story was written, the Sensex and Nifty were each up 0.2%, sitting at 66197 points and 19619 points, respectively. Early morning, the Sensex rose to 66214 points. The recent bull run in Indian stocks was fueled by a steady infusion of foreign portfolio funds, a positive economic outlook, robust global markets, and moderate inflation.
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).
According to data, FPIs purchased Indian stocks in March, April, May, and June for Rs 7936 crore, Rs 11631 crore, Rs 43838 crore, and Rs 47148 crore. They purchased shares for Rs 30660 crore in July, continuing the trend. However, several analysts have noted that it is doubtful that the market would continue to rise from its current levels because of the elevated valuations. “Investors should remember 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.
