Sensex, Nifty firm up as investors shrug off global jitters on strong macros
The Indian stock market hit a new record high on September 11, 2023, with the Nifty 50 index crossing the 20,000-mark for the first time. The Sensex also rose to a record high of 67,130.59.
The gains came despite a mixed global trend, with most major markets closing lower. However, Indian equities were supported by strong domestic macroeconomic data, a breather in August, and resilient buying from domestic institutional investors.
Domestic indices experienced a gradual rally throughout the past week, buoyed by strong domestic macroeconomic data such as robust GDP and PMI figures. This painted a positive outlook for the domestic market, despite a mixed global trend marked by weak cues.
A lack of opportunity in key economies is also prompting investors to increase their bets on India. Investors are increasing exposure to stocks of companies that are likely to play a major role in boosting the economy, such as those in the infrastructure and realty sectors.
The gains were also supported by a technical breakout, with the Nifty recently breaking out of a bullish flag formation. This suggests the potential for a significant upward move in the coming weeks and months.
However, the Nifty 50 faces a critical psychological hurdle at the 20,000 mark, which currently acts as a key resistance level. If Nifty struggles to breach this level, there is the possibility of a pullback. On the downside, the range of 19,600–19,500 is seen as a robust demand zone, providing support.
Overall, the outlook for the Indian stock market remains positive in the near term. However, investors should exercise caution and avoid chasing high prices, especially in the smallcap and midcap space.
Here are some additional factors that could support the Indian stock market in the coming months:
- Continued strong economic growth
- Rising corporate earnings
- Increased foreign investment
- Lower interest rates
However, there are also some risks to the outlook, such as:
- Rising inflation
- Geopolitical tensions
- A slowdown in global growth
Investors should keep these risks in mind and rebalance their portfolios accordingly.
- 22 Sep
Technical Analysis Report for Nifty and Three Buy Calls
The Nifty index has been on a strong uptrend in the past three weeks, but it has recently retraced some of those gains. It is now expected to oscillate within the 19,605 to 19,878 range over the next few sessions. Three stocks that look good for buying over the next 2-3 weeks are Havells India, KSB, and Gujarat Ambuja Exports. All three stocks have strong bullish momentum and are trading above their key moving averages.
- 22 Sep
Maruti Suzuki Stock Gains on Bullish Stance from Global Brokerages
Maruti Suzuki stock gains on bullish stance from global brokerages Shares of Maruti Suzuki India surged on Friday after global brokerages Citi and Morgan Stanley maintained bullish stance on the counter. Both brokerages cited the company's improving product mix and attractive valuation as key reasons for their optimism. In addition, Maruti Suzuki reported strong sales performance in August 2023, with total domestic sales jumping 14 percent year-on-year and sale of utility vehicles jumping 118 percent year-on-year. Overall, the bullish stance from global brokerages and the company's strong sales performance are providing a boost to Maruti Suzuki stock.
- 22 Sep
PNB Gilts Hits Upper Circuit on Inclusion of Indian Bonds in JPMorgan Index
Shares of PNB Gilts hit upper circuit on September 22, 2023, following news that India's inclusion in JPMorgan's bond index is seen driving billions of dollars of inflows. The index provider will add Indian bonds to its widely-tracked emerging market index starting June 28, 2024. PNB Gilts is a primary dealer in government securities and other fixed-income instruments. The inclusion of Indian bonds in JPMorgan's index is expected to attract significant foreign inflows, which is likely to benefit PNB Gilts and other primary dealers in government securities.
- 22 Sep
Indian Bond Markets to Remain Stable in Near Term After JPMorgan Inclusion
Indian bond markets are expected to remain stable in the near term after JPMorgan's inclusion of India in its widely tracked emerging market debt index, according to BlackRock's head of Asia Pacific fixed income, Neeraj Seth. Seth expects inflows of around $20 billion to $25 billion into India after the maximum weight threshold is achieved on the GBI-EM index. Given the size of the global government bond market, this is relatively small and is unlikely to have a significant impact on volatility.
- 22 Sep
Indian market drops on September 22 despite inclusion of Indian bonds in JP Morgan index
Indian benchmark indices Sensex and Nifty fell for the fourth consecutive day on September 22, despite the inclusion of Indian bonds in the JP Morgan Government Bond Index-Emerging Markets (GBI-EM) global index suite from June 2024. The market is expected to remain volatile in the near term, with key support at 19,600 for Nifty.