Sensex hits 64,000, Nifty crosses 19,000 intra-day, fuelled by FPI buying

Strong domestic economic growth, easing consumer inflation and strong foreign inflows pushed benchmark indices to new highs on Wednesday.

while the elegant It reached an all-time high of 19,011.25, breaching the 19,000 mark for the first time. Sensex It also crossed the 64,000 mark for the day. At the close, the Sensex was up 499.39 points, or 0.79 percent, at 63,915.42, and the Nifty Index was up 154.70 points, or 0.82 percent, at 18,972.10. Even Nifty Bank made a new high of 44,508.40.

The gains were broad as all the sectoral indices, led by Nifty Pharma, Nifty Metal and Nifty Oil & Gas, finished in the green except for Nifty Media. Both the medium and small caps rose while the Nifty500 and Nifty 200 indices peaked in the new year.

FPI action

According to the exchange’s interim data, foreign portfolio investors (FPIs) accumulated shares worth Rs 12,350 crore on the day, the highest level since March 2. Including this, net foreign investment enterprises have bought around Rs. 46,000 crore shares in June so far.

“Indian markets had a memorable day today, with the market rally broadly… all sectoral indices closed in the green, driven by positive news flows surrounding the HDFC-HDFC Bank merger and strong Q4 current account deficit data,” said Richis Vanara, technical analyst. and derivatives, Stoxbox.

delay in monsoon And the possible start of El Nino… raises caution among policy makers. However, economic activity has held up well so far in the first quarter of FY24 and there is growing optimism about the local economy,” said Mitul Shah – Head of Research at Reliance Securities.

Global markets also rebounded after US economic data indicated the resilience of this economy despite the high interest rate environment. The S&P 500 closed 1.1 percent higher on Tuesday, while the Nasdaq rose 1.6 percent, both rebounds from two straight sessions of declines.

Next support

The short-term trend for Nifty remains positive. After clearing the critical overhead resistance at 18,900 on Wednesday, there is potential for further upside towards 19,100-19,200 levels in the next few sessions before turning to slight consolidation/weakening from the highs. “The immediate support is at 18,830 levels,” said Nagaraj Shetty, Technical Research Analyst, HDFC Securities.

CLSI, the global investment advisory firm, which downgraded India to a lower weight, said there was no rush to raise the weight. Relative valuations, while less extreme, remain very unattractive. Over the 16 years from 2004 to the end of 2019, Indian equities traded at an average multiple of 35 per cent premiums versus emerging markets overall on 2-year sector-adjusted earnings. 12 months Since 2020, he added, that premium has averaged 80 percent and is where the market is currently trading.