📷 Image Credits: Moneycontrol
The Indian stock market has been experiencing a highly bullish trend, with all key indices hitting record highs. On June 14, Nifty, Sensex, and Bank Nifty all reached new peaks, while small-cap and mid-cap indices also climbed to record levels. Despite trading sideways for the past two sessions, speculation arose about whether the market has reached its peak after recent highs.
Experts believe it is premature to assume that the Indian stock market has topped out. While select auto stocks and banks have been the driving force behind the recent rally, heavyweight stocks like Reliance Industries Limited (RIL), HDFC Bank, HDFC Ltd, Infosys, and Tata Consultancy Services (TCS) have yet to participate. These stocks, which constitute a significant portion of the Nifty index, have not performed as well as the market as a whole in year-to-date (YTD) returns.
Looking ahead, market experts anticipate leadership in the rally to shift towards FMCG and Capital Goods sectors, with support from PSU banks and select auto stocks. Long-term investors are advised to consider FMCG, Capital Goods, IT, and Reliance shares for potentially higher returns in the upcoming sessions.
Saurabh Jain, Vice President at SMC Global Securities, suggests that some consolidation was expected after the market consistently hit new highs. He emphasizes the continued interest in small-cap and mid-cap stocks and anticipates a sideways to positive trend in the market. Anuj Gupta, Vice President at IIFL Securities, highlights the potential for future upside in Nifty, driven in part by stocks like TCS, Infosys, and Reliance.
Ultimately, the outlook for the Indian stock market remains positive, with opportunities for growth in various sectors. Investors are advised to carefully consider their investment strategies and keep a close watch on market developments.
