India’s benchmark Sensex stock index hit a record high on Wednesday, while the Nifty 50 moved to its all-time high, amid continued foreign inflows into Indian stocks supported by strong macroeconomic print in the country.
The S&P BSE Sensex hit an all-time high of 63,588.31 before giving up some gains to settle at 63,418.93 at 10:46 IST. The blue-chip Nifty rose 0.05% to 18,826.80.
“The Indian economy is in a multi-year up cycle, which is a major positive. While there are areas of overvaluation, there are also areas of opportunity in the markets,” said Gaurav Dua, senior vice president and head of capital market strategy at Sharekhan. “Indices may be at or near record highs, but valuations are not, thanks to healthy earnings growth over the past 20 months.”
Foreign investors have poured in 738.12 billion rupees ($8.99 billion) so far this financial year. They were net sellers in the two previous fiscal years with a record outflow of Rs 1,400.10 billion in FY22. India’s economic growth accelerated in the March quarter while inflation cooled, showing the country remains one of the fastest-growing emerging economies.
Nine of 13 major sectoral indexes advanced on Wednesday, with top-heavy financial institutions adding more than 0.6%. The broader indexes continued to outperform their larger counterparts, with the mid-cap index up 1.18% and the smallcap index up 0.8%.
Among stocks, Larsen and Toubro rose more than 1% to be among the Nifty 50’s top gainers after Morgan Stanley reiterated its “overweight” rating and cited strong evidence of progress in the investment cycle.
Shriram Finance jumped 15% to a record high after Piramal Enterprises sold its entire 8.34% stake in the company.
Meanwhile, markets awaited the testimony of US Federal Reserve Chairman Jerome Powell before the US House Financial Affairs Committee.
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