For the second day in a row, the Sensex and Nifty reached all-time highs on Friday as they tracked the global market rally that was sparked by the Fed. With 1% increases, the Nifty Metal and IT sectors were the top sectoral gainers.
Following this month’s surge in the first half, the market is probably going to consolidate. The market can remain robust by buying on dips and receiving positive news flows. The US bond yield, which has dropped sharply to around 3.95 percent on the 10-year, is currently the strongest tailwind for the market, drawing significant capital inflows to emerging economies such as India. These segments will continue to perform well because large cap financials and IT are fairly valued and have been FII’s preferred industries.
The general market is staying buoyant due to retail exuberance, but these valuations are approaching bubble territory. These markets are susceptible to a significant correction at high valuations. Investors should use caution even if they decide to stick with their investments.
Highlights of the Stock Market
Sensex and Nifty reached new all-time highs.
PVR Inox and PB Fintech anticipate block deals.
Through the QIP route, Sterling & Wilson raises Rs. 1,500 cr.