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BUSINESS EYE DECEMBER 29, 2023 | The Indian Eye 30

Market volatile or positive signs:

What is making Indian stocks go up and down?

Sensex and Nifty hit fresh highs at the opening bell on Wednesday, due to a host of factors

including a firm economic growth outlook and strong inflow of foreign investments

OUR BUREAU
Mumbai

SE Sensex and Nifty50, the Indian bench-
mark indices, witnessed a strong recovery
Bon Thursday, bouncing back from the day’s
low due to increased buying activity in banks, auto,
and IT sectors. Reliance Industries (RIL), a heavy-
weight in the market, also saw its shares rise by over
1%, contributing to the overall upward movement
of the stock market benchmarks.
BSE Sensex closed the trading day on Thurs-
day at 70,865.10, up over 350 points or 0.51%. Nif-
ty50 closed the day at 21,255.05, up over 100 points
or 0.50%.
The S&P BSE Sensex surged by more than
900 points from its intra-day low of 69,920, while
the Nifty climbed by 300 points to reach a high of
21,288. HDFC Bank and RIL were the top con-
tributors to the index, followed by Infosys.
Nifty Bank, the banking indicator, conclud-
ed 0.83% higher at 47,840.15, marking a gain of
394.85 points. Despite this recovery, experts warn
that mid and small-cap stocks remain vulnerable
to correction due to their high valuations. On the
other hand, large-cap stocks are expected to see
buying interest during declines.
On Wednesday, Sensex and Nifty had hit fresh
highs at the opening bell, due to a host of factors
including a firm economic growth outlook and
strong inflow of foreign investments. The indices
had touched their all-time highs last week too. India’s benchmark Sensex and Nifty posted their longest weekly winning streak in six years last Friday (ANI)
Sensex was at 71,743.66 points, up 0.43 per cent,
while Nifty was at 21,548.95 points, up 0.45 per ing its fastest-growing major economy tag, infla- 77 per cent premium over its IPO issue price. It
cent, from their previous day closing, respectively. tion in a comfortable zone, and political stability listed at Rs 1,400 against its issue price of Rs 790.
India’s benchmark Sensex and Nifty posted in the run-up to General Elections 2024. Before “Thus, considering such a premium on listing,
their longest weekly winning streak in six years last November, FPI participation in Indian stocks was allottees who applied for the public offering for
Friday, extending their rally to record highs, on the lukewarm and they had turned net sellers. They listing premium are advised to book profit how-
possibility of an interest rate cut in the US markets sold Rs 14,768 crore and Rs 24,548 crore, in Sep- ever investors with long-term view may hold it by
in early 2024. The two indices rose over 2 per cent tember and October, respectively. keeping a stoploss at 1260. A fresh buy will not be
in the week on a cumulative basis. Foreign investors typically shift to developing recommended at such a high level,” said Shivani
The strong inflow of funds from foreign port- or emerging economies to make money when in- Nyati, Head of Wealth, Swastika Investmart Ltd.
folio investors (FPIs) lately also supported the terest rates are relatively low in advanced econo- Also, India Shelter Limited made its stock
stocks to march towards all-time highs. Notably, mies, let’s say here in this case the US. market debut today. The stock witnessed an attrac-
foreign portfolio investors have again trained their “Valuations in the mid and small cap segments tive listing at Rs 618, with a premium of around 25
sight towards India, becoming net buyers in the are excessive. Chasing mid and small caps at these per cent.
country’s stock market. valuations is risky. Going forward, large-caps are “India Shelter boasts strong fundamentals built
Following a cumulative accumulation of Rs likely to outperform. Even if they don’t, safety is on years of experience in the affordable housing
9,001 crore in November, they have again made in large caps. Investors should give importance to market. The company has a diverse portfolio and
a beeline to invest in Indian stock markets, with safety in this time of optimism,” said VK Vijayaku- strong distribution network, catering to the grow-
Rs 54,747 crore invested so far in December, data mar, Chief Investment Strategist at Geojit Finan- ing demand for quality and affordable homes,”
from the National Securities Depository (NSDL) cial Services. Nyati said
showed. Meanwhile, DOMS Industries, a leading Indi- “Investors are advised to book this listing gain;
The latest inflow comes at a time when India an stationery player, had a blockbuster stock mar- however, those who still want to hold it may keep
reported strong quarterly GDP growth maintain- ket debut. It listed on the bourses with a whopping a stop loss at (Rs) 558.”

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