The stock market opened on a positive today with both the Sensex and Nifty indices hovering near their all-time highs.
At the commencement of the trading day, the Sensex exhibited a green signal, surging by 179.77 points to reach 67,646.76. Similarly, the Nifty opened in positive territory, with a gain of 66.35 points, taking it to 20,136.65.
Among the Nifty-listed companies, 22 were in the advancing category, 27 were experiencing declines, and 1 remained unchanged, reflecting a mixed sentiment among investors.
Notable gainers in the early trading session included Wipro, Adani Enterprises, M&M, Coal India, and SBI, while LTIMindtree, SBI Life, Sun Pharma, Axis Bank, and Asian Paints were among the top losers.
Market analyst, Varun Aggarwal, founder and managing director of Profit Idea, expressed optimism about the market’s direction.
Aggarwal noted, “Strong put writing around 19,500 PE (price to earning ratio) indicates a positive market bias. The small and mid-cap ratio favors bullish momentum, and we are only halfway through the channel. It’s clear that the bull run in small-caps is not over, and corrections are healthy for the market.”
“The ratio is only halfway done, meaning that we are in the middle point of the channel at 0.62, and the top end is at 0.85. It will take time to get there, and the bull run in small-caps is not over. Near-term corrections are good at shaking out weak hands as we go along”, said Aggarwal.
Several sectors, including IT, Infrastructure, Media, Banks, and Pharma stocks, showed promise, with specific mid and small-cap stocks still having the potential for significant growth from current levels.
“IT, Infra, Media, Banks, Pharma stocks are looking favourable. Specific mid and small cap stocks can still multiply from current levels”, said Aggarwal.
The recent robust performance of the stock market is partially attributed to India’s strong GDP growth rate of 7.8 per cent in the first quarter (April-June) of the fiscal year 2023-24. This positive economic outlook, coupled with continued foreign portfolio investments, has bolstered investor confidence.
Global markets, particularly in the United States, are also being closely monitored. The anticipation of the August inflation data release, expected to shed light on the US Federal Reserve’s monetary policy decisions, has influenced market sentiments.
With consumer inflation reaching 3.2 per cent in July 2023, investors are keen to see if the Federal Reserve will adjust its policies in its upcoming meeting scheduled for September 19-20.
As the trading day progresses, market participants will closely monitor developments and economic indicators to gauge the market’s direction in the coming days.
The Indian stock market remains poised for further excitement as it flirts with record-breaking highs.
(with inputs from ANI)
