Indian markets continue to rise, picking up momentum
Indian markets continued their upward momentum this week, with the benchmark indices Sensex and Nifty rising for the second week in a row. The Sensex gained 1.85% for the week, while the Nifty rose 1.98%. The BSE Mid-Cap index was the outperformer, rising 3.93%, while the BSE Small-Cap index gained 2.26%.
The rally was broad-based, with all sectoral indices ending in the green. The top performers were the BSE Realty index and capital goods index, which both rose 5%. The energy index gained 4.7%.
The positive sentiment in the Indian markets was supported by a number of factors, including strong corporate earnings, positive global cues, and continued buying by domestic investors.
On the corporate earnings front, a number of companies have reported strong results for the quarter ended June 2023. This has boosted investor confidence and expectations for the rest of the year.
Globally, equity markets were mixed this week, with European and Asian markets mostly in the green, while US markets were in the red. However, the positive sentiment in the Indian markets was not affected by the weakness in the US markets.
Domestic investors continued to be net buyers of equities this week, with inflows of Rs 9,321 crore. This has helped to support the market momentum.
Going forward, the Indian markets are expected to continue to rise, but the pace of the rally may moderate. The key factors that will impact the market in the coming weeks include the outcome of the upcoming US inflation data, the pace of economic growth in India, and the movement of crude oil prices.
Stocks to watch
Some of the stocks that are likely to outperform in the coming weeks include:
- Private sector banks: Axis Bank, IndusInd Bank
- Life insurance companies: SBI Life, Titan
- Real estate companies: DLF, L&T
- Technology companies: LTIM, HCL Tech
These stocks are all well-positioned to benefit from the positive sentiment in the Indian markets.
Overall, the outlook for the Indian markets is positive in the near term. However, investors should be mindful of the risks posed by rising inflation and geopolitical tensions.
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