Indian benchmark indices Sensex and Nifty hit fresh record highs, but headline indices have seen more modest performance compared to massive rally in mid and small cap stocks
With the monsoon kicking in and the Reserve Bank of India taking a rate pause, the strong momentum in earnings is likely to continue. Thus, at current valuations, the market is expected to continue its up move and remain buoyant
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Indian markets seem to be on an adrenaline rush in June. A pause in key interest rates by the US Federal Reserve undoubtedly injected fresh liquidity in equities but it is also better-than-anticipated macro-economic indicators, which has soothed investors nerves for now.
Money, mostly routed through the institutional route, is being pumped into equities, ballooning stocks into record highs. On Wednesday, the Sensex hit a fresh high of 64,050.44 before ending the day at 63,915.42, while the Nifty, too, scaled 19,000 for the first time ever, hitting a record high of 19,011.25 during the day.