📷 Image Credits: Mint
Indian benchmark indices continued their record-high run on Thursday for the second straight session. The Sensex rose 406 points to its new high of 80,392.64 while the broader Nifty gained 114.5 points to its peak of 24,401.
The Sensex reached the 80,000 mark for the first time on July 3. Last week, on June 27, the Nifty also hit a new milestone by crossing the 24,000 level for the first time.
“Sensex crossing the 80,000 mark is a big achievement for the Indian stock market. 16 years ago it was at 8800 on the day when Lehman, the leading bank in the US markets, crashed. Nine times return in 16 years. However, four years ago during the time of Covid, it was at 26000, which seems unrealistic but it is true. It gives confidence that equity markets did perform well in the long run, we need patience and confidence while investing and even after it. Based on the current domestic macros, our advice is to continue investing systematically in equities with a long-term perspective,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
The recent rally has been boosted by supportive global data and monsoon progress in India. In the US, bond yields have softened, reinforcing the Federal Reserve’s case for potential rate cuts this year due to weaker economic data. Lower bond yields and expectations of interest rate cuts in the US are encouraging Foreign Portfolio Investors (FPIs) to remain active buyers in the market.
Despite these record highs and the expensive valuations of Indian market, experts predict that the current bull run will continue. Just in the 4 sessions of July, the indices have gained almost 1.5 percent after an over 6.5 percent rise in June.
“We continue to remain positive on Indian markets from a long-term perspective given strength in earnings growth and its longevity and continued improvement in capital efficiency. Markets at the aggregate level may not look optically attractive, but business earnings delivery will be keenly watched out for. Those that deliver on to expected strong growth should continue to create value,” said Sumit Jain, Deputy CIO, ASK Investment Managers.
With valuations so high, a continuing bull momentum and no imminent reasons for corrections, market participants are faced with both excitement and caution. Amidst this backdrop, industry experts share their perspectives on how investors should navigate the current market landscape. From sectoral preferences to prudent portfolio adjustments, their insights provide valuable guidance to investors.
While the market continues its upward trajectory, investors are advised to approach with informed caution. Diversifying portfolios, focusing on strong fundamentals, and staying attuned to macroeconomic trends are key strategies recommended by experts to harness opportunities and navigate potential volatility in the months ahead.