Indian Stock Market Hits Record High
The Indian stock market opened at a record high on July 2, with Sensex starting at 79,840.40, up 364 points or 0.46%, and Nifty at 24,228.75, up 86 points or 0.36%. Bank Nifty also opened in green at 52,079.3, up 219 points or 0.42%. The Nifty Midcap 100 opened at 56,462.70, up 170.20 points or 0.30%.
However, soon after the opening, some indices turned red due to profit-booking. Auto stocks and other sectoral indices like Financial Services, FMCG, Metal, Pharma, PSU Banks, Private Banks, Healthcare, Consumer Durables, and Nifty Midsmall Healthcare traded in the red during the initial hours.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that Nifty has delivered 10.4% returns in the first half of 2024, following a 20% return in 2023. He attributed the market’s resilience to the ‘buy on dips’ strategy by domestic investors. He also warned that some stocks have bubble valuations and are vulnerable to sharp corrections.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, mentioned that the market’s short-term texture is positive but warned of potential profit booking due to temporary overbought conditions.
On July 1, the Indian market benchmarks recovered from the previous week’s downturn. Nifty 50 closed at 24,142, gaining 131 points, while Sensex rose by 443 points to end at 79,476. Foreign Portfolio Investors (FPIs) significantly increased their investments, with a net investment of Rs 16,672.2 crore in the last week of June, including a surge of Rs 6,966.08 crore on Friday alone.
