Nifty Hits 9,400 Mark: Time To Book Profits?
Sensex rose for a third day, climbing 1.1%, its biggest move since March 14.
India’s NSE Nifty 50 index touched a new record high on Wednesday, boosted by the Indian Meterological Department’s forecast of a normal monsoon. Investors were also enthused by a better-than-anticipated earnings season.
The market momentum has been largely driven by domestic inflows and this is expected to expected to continue, said Dilip Bhat, joint managing director of Prabhudas Liladhar. He expects the Nifty to scale the 9,600 mark in the next three months.
Edelweiss Capital’s President and Chief Executive Officer Vikas Khemani concurs. There is strong liquidity that is driving the markets now and the overall risk perception is low, he said.
In the medium to long term, I have no doubt that it can sustain. I have no idea about the short term. We should expect timely corrections. I look at the market from a long-term perspective and there are a lot of opportunities right now in the financial services, industrials, chemicals, and logistics space.Vikas Khemani, President and CEO, Edelweiss Capital
The S&P BSE Sensex index rose for a third day., climbing 1.1 percent, its biggest move since March 14. HDFC Ltd. contributed the most to the advance, rising 3.3 percent. Bharti Airtel increased nearly 8 percent, the biggest gain since July 2010.
While on the flipside, Wipro Ltd. and Tata Power Ltd. fell 1.8 percent each making them the top loser on the Nifty Index.
Also Read: Monsoon Adds To The Cheer. Will It Last?
Besides the resilient global macroeconomic picture, a stable political environment is also helping India’s cause, independent market analyst Ajay Bagga told BloombergQuint over the phone. Valuations are, however, a bit of a concern right now, he said.
It’s an overbought and an overvalued market as people are willing to pay the premium for the kind of growth that India has to offer, he said.
We expect an earnings rebound in the second half of this year and that’s what is being paid by the market. There could be short-term corrections but overall the market is looking very positive momentum wise and seemed to be poised into breaking into further highs.Ajay Bagga, Market Expert
