A surge in consumer and IT stocks propelled benchmark indices Nifty and Sensex to new all-time highs on Wednesday. Sensex reached a high of 71,800 points, up 400 points, while Nifty50 broke through the 21,550 barrier.
Every sectoral index saw positive trading, with the Nifty FMCG and Nifty IT indices rising by 1% apiece.
Features of the Stock Market
A 77% premium is listed for Doms shares.
The debut price of India Shelter Finance shares is 26% higher.
Registration for the Azad Engineering IPO begins.
The market is not in the festive spirit, despite the holidays being quickly approaching. Though at a higher level of consolidation. The same pattern is being seen in the US mother market’s steady ascent, which has assisted in the Dow’s achievement of a new record high. The market’s underlying strength is indicated by the VIX, or fear gauge, being at a low level of 12.
The mid- and small-cap segments have exorbitant valuations. It is dangerous to chase mid and small caps at these valuations. Large-caps should do better in the future. Big caps offer safety, even if they don’t. In these optimistic times, investors should prioritise safety.
FIIs will keep purchasing Indian equities due to declining US bond yields. There will probably be another round of FII buying in the New Year. Big caps like RIL, who haven’t been involved in the rally much, might take action.