Indian Indices Reach New Highs Amid Positive Global Cues

Indian Indices Reach New Highs Amid Positive Global Cues
Indian Indices Reach New Highs Amid Positive Global Cues
Indian Indices Reach New Highs Amid Positive Global Cues
Indian Indices Reach New Highs Amid Positive Global Cues

Indian Indices Reach New Highs Amid Positive Global Cues

Indian Indices Reach New Highs Amid Positive Global Cues
The Indian market last week saw the domestic benchmark indices Sensex and Nifty reaching fresh record highs. The Nifty50 surpassed the psychological 20,000 mark, thanks to strong macroeconomic indicators such as a lower consumer price index (CPI), demand optimism in China, and hints of a pause in rate hikes by the US Federal Reserve. The Sensex closed at 67,838.63, up 320 points or 0.47%, and the Nifty settled at 20,192.35, rising 89 points or 0.44% on Friday. This upward trend was driven by a rally in global markets and renewed foreign capital inflows.

IT, Banking, and Pharma Sectors Lead the Race
Notably, IT, banking, and pharma sectors were the top gainers last week, while realty and energy closed in the red. Analysts expect the overall positive momentum to continue, particularly in large-cap stocks, while sectoral rotation is likely in the broader market. Elevated crude oil prices and concerns about inflation were offset by robust domestic industrial and manufacturing production data and a decline in inflation.

Mid and Small-Cap Indices Face Pressure
However, mid and small-cap indices faced pressure due to profit-booking driven by overvaluation concerns. Ten new public issues are set to roll out for bidding this week, along with five listings across mainboard and small and medium enterprises (SME) segments. Domestic factors such as the pace of the monsoon, surging crude oil prices, and institutional flows will also play a crucial role.

US Federal Reserve Policy Meeting Looms Large
The upcoming Federal Open Market Committee (FOMC) meeting of the US Federal Reserve is a significant focus for investors this week. The Fed is widely expected to leave its benchmark overnight interest rate unchanged. Other key macroeconomic data that could impact the market include the US S&P global manufacturing and services PMI, crude oil inventories, initial jobless claims, UK inflation, and Eurozone inflation. The performance of global indices, particularly the US, could further support the prevailing bullish sentiment.

Investors Excited About New IPOs
In the coming week, ten new initial public offerings (IPOs) will be launched. Among the IPOs, Signature Global and Sai Silks Kalamandir will open for subscription on September 20, while Vaibhav Jewellers will open on September 22. Several listings are also expected in the SME segment. Foreign institutional investors (FIIs) have shifted gears and invested significantly in Indian equities, which should also help boost market sentiment.

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