21 June, New Delhi: The Indian stock market reached new highs on Wednesday after a string of record-setting sessions. The uptick in domestic equities mirrors the upswing in international markets and the robust state of domestic macro fundamentals.
The Sensex reached a new all-time high of 63,588 before closing at 63,523, an increase of 0.31 percent. The positive market performance may be attributed to a number of factors, including a solid GDP forecast, controlled inflation, and heavy buying from overseas investors.
The Sensex’s record-breaking rise mirrors a similar trend in other stock markets across the world. A majority of markets are now trading at or around their 52-week highs. VK Vijayakumar, chief investment strategist at Geojit Financial Services, said that last year’s correction in global markets discounted the effect of a US recession on global GDP and corporate profitability.
However, Vijayakumar warned that a prolonged advance above the record highs is unlikely since equities in India are already valued at very high levels.
The Sensex has gained 4% so far this year, and it’s up approximately 23% in the previous 12 months.
Today’s record highs in the stock market may be attributed to increasing manufacturing PMI and government spending on infrastructure. S Ranganathan, head of Research at LKP Securities, stated that despite an increase in interest rates, loan demand is on the rise and that India Inc. now has stronger Balance Sheets than ever before.
The sluggish southwest monsoon might continue to weigh on the market moving forward. The country’s economic forecast is often affected by the monsoon.
On June 8, a full week after the official start of the southwest monsoon on June 1, it finally reached Kerala.
With a regular variation of about seven days, the monsoon typically arrives in Kerala on June 1. It’s particularly important for kharif harvests. There are three harvest times in this country: summer, kharif, and rabi.
Prime Minister Narendra Modi’s current visit to the United States and potential military agreements between the two nations have refocused attention on the Indian defence equities despite the markets achieving record trade levels. Stocks in the military industry have done quite well in recent years, with many investors reaping multi-fold gains as a result of the government’s intense focus on domestic defence production.
In the United States for the first time, Prime Minister Modi was invited by President Joe Biden and First Lady Jill Biden. Later on Wednesday, Prime Minister Modi will celebrate Yoga Day at the United Nations headquarters before flying to Washington, DC to receive a ceremonial welcome from President Trump at the White House on Thursday, June 22.
