All-time highs! Sensex crosses 79,500, Nifty nears 24,150
Indian equity benchmarks, Sensex and Nifty, have hit all-time highs for the fifth consecutive day on Friday. Both indices were up by 0.4% each at 10:15 am, with Sensex at 79,522 and Nifty at 24,137. VK Vijayakumar of Geojit Financial Services predicts this bull run will continue in the near term with largecap stocks leading the charge.
Broader indices and sectors join the rally
Broader indices like Nifty Midcap 100 and Smallcap 100 gained up to 0.6% in today's session. Sectorally, Nifty PSU Bank was the top performer with a jump of over 2% led by gains in PNB, Bank of Baroda, and SBI. However, Vijayakumar advised investors to stick to largecaps amidst this bull run and cautioned against smallcaps. The upward momentum continued with Nifty and Sensex closing at record highs on Thursday, driven by a surge in infrastructure and energy stocks.
Foreign inflows expected to boost Indian market
Vijayakumar anticipates an increase in foreign inflows toward India as its macros and fundamentals remain strong compared to other emerging market players. Despite concerns of an overbought market, he does not believe there is a formation of a bubble. He pointed out that Nifty's P/E ratio stands at 21x FY25E earnings, which is still below the estimated bubble of 23x PE ratio.
