Indian Stock Markets Soar: Sensex and Nifty Close Higher

Indian stock indices Sensex and Nifty started the July-September quarter strong, closing up 0.6% each. Sensex ended at 79,476 points and Nifty at 24,142 points. The indices have gained 10-11% in 2024 so far.

Vinod Nair, Head of Research at Geojit Financial Services, expects this trend to continue due to anticipated rebound in discretionary spending. Investors are also focusing on upcoming US job data and the Fed Chair’s speech for further indications on interest rates.

Foreign Portfolio Investors (FPIs) significantly increased their investments in the Indian stock markets in late June, with net investments at Rs 16,672.2 crore during the last week, including a notable surge of Rs 6,966.08 crore on Friday alone. This marks a turnaround in FPI sentiment, turning net buyers with Rs 26,565 crore buys for the month.

In April and May, FPIs were net sellers due to the geopolitical crisis in the Middle East. However, domestic institutional investors remained net buyers, compensating for the outflows by foreign investors.

Ajit Mishra, SVP of Research at Religare Broking Ltd., suggests that the consistent buying interest on dips indicates bullish control. He advises traders to focus on sectors with rotational participation and consider adding positions during pauses or dips.