At close of trade, the sensex was up 108 points at 61,981, its highest-ever level on a closing basis. It is now less than 300 points away from its all-time peak of 62,245 points, recorded in intra-day trades on October 19, 2021. On the NSE too, Nifty gained 6 points to close at 18,410, about 200 points away from its all-time high of 18,604, recorded on the same day as the sensex.
Some spoilsports in market highs too
Several market players have been saying that the two leading indices are expected to hit new highs this week as foreign funds have turned aggressive buyers in recent weeks. However, fundamental, technical and geopolitical reasons may play spoilsports, market players warned.
According to Vinod Nair, head of research, Geojit Financial Services, as the domestic market has started to trade around the all-time high levels, it is trending indecisively following the recent geopolitical tensions and weak performance by global counterparts. “Although domestic macroeconomic indicators and FII inflows are favourable, given the high valuations, domestic markets can behave cautiously in the short to medium-term. Rest of the other EMs (emerging markets) look more attractive when the global market is attempting to bounce back after a long period of consolidation.”
However, on the geopolitical front, “the ongoing G-20 meeting at Bali in Indonesia has raised hopes of some positive development to reduce geo-political tensions”, said Siddhartha Khemka of Motilal Oswal Financial Services.
So far in the current month, foreign portfolio investors (FPIs) have net bought Indian stocks worth about Rs 28,300 crore, the highest net inflow figure since Rs 51,204 crore recorded in August, data from CDSL and BSE showed.
On Wednesday, however, FPIs recorded a net outflow of Rs 386 crore, while domestic institutions were net buyers at Rs 1,437 crore, BSE data showed. The day’s gains in the sensex were led by Kotak Bank, HDFC Bank and HDFC while selling in index heavyweight Reliance Industries, Bajaj Finance and Tata Steel limited the upmove. Of the 30 sensex constituents, 17 closed higher.
As leading indices are nearing their all-time high levels, investor wealth too is close to its all-time peak. At Rs 287.2 lakh crore, BSE’s market cap is now about Rs 2.5 lakh crore away from its all-time peak of Rs 289.7 lakh crore, recorded on September 13 this year.