Indian stocks decline marginally on profit booking, Sensex still above 60,000
Indian stock indices started Thursday's session with minor losses primarily due to profit booking after the recent bull run.
Barring today's marginal losses, the latest bull run in Indian stocks has been continuing for the past five weeks on a trot.
At 9.21 a.m., Sensex traded at 60,135.12 points, down 125.01 points or 0.21 per cent, whereas Nifty traded at17,917.60 points, down 26.65 points or 0.15 per cent.
Pertinent to mention here, benchmark index Sensex touched pshychologically crucial 60,000 mark on Wednesday after more than four months. A slight moderation in inflation -- both in the US and India -- coupled with fresh inflow of foreign funds into Indian capital markets infused positive investor sentiments.
"The decline in inflation has increased the possibility of a soft landing for the US economy. In India, the decline in inflation, declining crude, strong growth momentum, good monsoon and above all FIIs turning consistent buyers have turned the sentiments in favour of the bulls. However, high valuation is a concern," said vK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Till early July, Foreign Portfolio Investors (FPIs) were consistently selling equities in the Indian markets for the past nine-to-ten months due to various reasons, including tightening of monetary policy in advanced economies, rising demand for the dollar and high returns from US bonds. They have pulled out Rs 175,653 crore worth equities so far in 2022, NSDL data showed.
In July, they were, however, the net buyer with a total purchase of equities worth Rs 4,989 crore. So far in August, they bought equities worth another Rs 36,716 crore, data showed.
Meanwhile, benchmark indices - Sensex and Nifty - rose nearly 10-11 per cent during the ongoing rally on a cumulative basis, thereby recovering largely the entire losses they witnessed so far in 2022. The latest rally in stocks made Indian investors richer by around Rs 25 trillion.
"While the domestic economy and earnings have showcased strong resilience, we remain caution at current valuations & suggest a staggered buying approach," said Kedar Kadam, Director - Listed Investments at Waterfield Advisors.
(ANI)
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