Today, on September 14, the Indian stock market greeted investors with a wave of positivity as both the Sensex and Nifty indices flirted with their all-time highs. In a promising start to the trading day, the Sensex surged by 179.77 points, reaching an impressive 67,646.76, while the Nifty displayed a similar bullish sentiment, opening positively with a gain of 66.35 points at 20,136.65.
As the trading day unfolded, investor sentiment appeared mixed, with 22 Nifty-listed companies advancing, 27 declining, and 1 holding steady. This diversity of performance suggests an intriguing day ahead.
Leading the charge among the early gainers were Wipro, Adani Enterprises, M&M, Coal India, and SBI, while LTIMindtree, SBI Life, Sun Pharma, Axis Bank, and Asian Paints faced early losses.
Market analyst Varun Aggarwal, founder and managing director of Profit Idea, provided insight into the market’s direction. Aggarwal highlighted, “Strong put writing around 19,500 PE (price to earning ratio) indicates a positive market bias. The small and mid-cap ratio favors bullish momentum, and we are only halfway through the channel. It’s clear that the bull run in small-caps is not over, and corrections are healthy for the market.”
Aggarwal elaborated, “The ratio is only halfway done, meaning that we are in the middle point of the channel at 0.62, and the top end is at 0.85. It will take time to get there, and the bull run in small-caps is not over. Near-term corrections are good at shaking out weak hands as we go along.”
Several sectors, including IT, Infrastructure, Media, Banks, and Pharma stocks, showcased promise, with specific mid and small-cap stocks still holding untapped potential. Aggarwal emphasized, “IT, Infra, Media, Banks, Pharma stocks are looking favorable. Specific mid and small-cap stocks can still multiply from current levels.”
This surge in the Indian stock market can be partially attributed to India’s robust GDP growth rate of 7.8 percent in the first quarter of the fiscal year 2023-24. The positive economic outlook, coupled with continued foreign portfolio investments, has fortified investor confidence.
Investors are also keeping a keen eye on global markets, particularly the United States, where the upcoming release of August inflation data is expected to shed light on the US Federal Reserve’s monetary policy decisions. With consumer inflation at 3.2 percent in July 2023, market participants eagerly anticipate the Federal Reserve’s meeting on September 19-20 for potential policy adjustments.
As the trading day progresses, market participants will closely monitor developments and economic indicators to gauge the market’s direction. The Indian stock market remains poised for further excitement as it flirts with record-breaking highs, promising potential rewards for investors in the days to come.