Sat, Sep 23, 2023

Stock market starts strong as Sensex and Nifty near record highs

Written by  Annesha Barua -- September 14th 2023 10:31 AM
Stock market starts strong as Sensex and Nifty near record highs

Stock market starts strong as Sensex and Nifty near record highs

Mumbai, September 14: The Indian stock market initiated trading on a promising note today, with both the Sensex and Nifty indices nearing their historic highs. As the trading day commenced, the Sensex displayed a positive trend, gaining 179.77 points to reach 67,646.76. Simultaneously, the Nifty opened in the green, with an uptick of 66.35 points, pushing it to 20,136.65.

Among the Nifty-listed companies, 22 were in an advancing position, 27 showed declines, and 1 remained unchanged, reflecting mixed sentiments among investors.

Prominent 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 trajectory. Aggarwal observed, "Strong put writing around 19,500 PE (price-to-earnings 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," added Aggarwal.

Several sectors, including IT, Infrastructure, Media, Banks, and Pharma stocks, exhibited promise, with specific mid and small-cap stocks still holding potential for significant growth from current levels. Aggarwal remarked, "IT, Infra, Media, Banks, Pharma stocks are looking favorable. Specific mid and small-cap stocks can still multiply from current levels."

The recent robust performance of the stock market can be partially attributed to India's impressive GDP growth rate of 7.8 percent in the first quarter (April-June) of the fiscal year 2023-24. This positive economic outlook, combined with sustained foreign portfolio investments, has bolstered investor confidence.

Global markets, particularly in the United States, are under close scrutiny. Market sentiment is influenced by expectations regarding the release of August inflation data, which is anticipated to provide insights into the US Federal Reserve's monetary policy decisions. With consumer inflation reaching 3.2 percent in July 2023, investors are keen to discern whether the Federal Reserve will make policy adjustments during its upcoming meeting scheduled for September 19-20.

As the trading day progresses, market participants will vigilantly monitor developments and economic indicators to gauge the market's trajectory in the coming days. The Indian stock market remains poised for further excitement as it flirts with record-breaking highs.

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