Nifty Conquers 10,000-Mark For The First Time
Indian shares have hit multiple records this year
- Nifty hits 10,000-mark for the first time ever
- Nifty crossed 9,000 level on March 14
- Nifty moved from 9,000-10,000 in 92 trading sessions
India’s NSE Nifty index hit the 10,000-mark for the first time on Tuesday, further cementing its position as one of Asia’s best performing stock market gauges.
The NSE Nifty 50 Index rose 0.45 percent to 10,011.30 at 9:16 a.m., led by cement makers and select bank stocks. The S&P BSE Sensex too hit an intraday record high of 32,374.
Indian shares have hit multiple records this year amid optimism about Prime Minister Narendra Modi’s policies, with the economy expanding at about seven times the pace of Japan.
Global and local funds have pumped about $16 billion into its stock market this year alone, according to data compiled by Bloomberg. Besides that, overseas investors have bought $20.2 billion worth of local bonds so far in 2017, according to depository data.
A big factor for the phenomenal rise in stock value has been the shift of Indian savers to more financial assets as prices of gold and property moderated after the government’s ban on high-value currency notes.
Mutual funds got nearly Rs 28,300 crore of inflows in the first three-months of the current financial year that began on April 1, as against about Rs 9,500 crore in the previous year, according to data from the Association of Mutual Funds in India.
Market experts BloombergQuint spoke to expect the Nifty to rise further driven by fundamental factors including the recovery in corporate earnings.
Don’t Exit
Investors should stay invested despite the recent rally, Sunil Singhania, the chief investment officer in charge of equities at Reliance Mutual Fund told BloombergQuint on the phone.
Expensive, Not Overstretched
There's still more value in large caps compared to small and mid-caps, according to Madhusudan Kela, an advisor at Reliance Capital Ltd.
Testament To India Inc’s Performance
The 10,000 mark is a reflection of India Inc.’s performance, he added., said Nilesh Shah, managing director and chief executive officer of Envision Capital, to BloombergQuint.
Nifty At 20,000?
Vijay Kedia, managing director at Kedia Securities said the index is poised to run up another 10,000 points in the next four to five years.
The Modi Effect
Nifty rise is also a reflection of the deep and structural changes in the country said Vallabh Bhanshali of ENAM Financial Consultants said.
Out-Of-The-World Experience
Watching the index grow from “three to four to five digits” has been awe inspiring for Ramesh Damani, member of the Bombay Stock Exchange.
Higher Levels Soon
Nifty at 10,000 is a milestone, not the peak of the Mount Everest, Sanjay Sinha, founder, Citrus Advisors, told BloombergQuint.
“As long as the companies that are a part of Nifty are able to show a growth in their earnings, hopefully with a renewed vigour in the next few quarters unlike the last couple of financial years, we can expect these levels to be held and higher levels very soon,” he said.