After economic data from the U.S. reinforced wagers that the Fed may be less hawkish than expected, Indian shares climbed on Friday, helped by wide gains across industries, with indices approaching record high levels.
12 out of the 13 significant sectoral indices increased. The midcap index reached a new record high and the smallcap index reached new 52-week high levels while broader markets also extended gains.
Less than 1% separates both benchmarks from their record highs. After a period of consolidation, many anticipate that the current advance will continue.
Investment advisor at Trust Plutus Wealth Kaizad Hozdar stated, “The consolidation phase will give investors time to accumulate and be positioned for a rally, which could strengthen over the next three to six months.”
Hozdar is optimistic about the midcap market as well as industries like auto accessory, non-bank finance firms, consumer durables, capital goods, and building materials.
Ashok Leyland, one of the individual stocks, increased by about 4% to a nine-month high as analysts saw the advantages of the automaker’s expansion ambitions, emphasis on margin improvement, and price discipline.
Following the award of a 122.27 billion rupee contract by the Ministry of Railways to a consortium of both enterprises, Titagarh Waggons and Ramkrishna Forgings saw increases of over 3% and 7%, respectively.
After Jefferies confirmed its “buy” recommendation, citing potential for margin expansion in the fiscal year 2024, Piramal Pharma saw a gain of more than 5%.
After data revealed that retail sales unexpectedly increased in May, the world’s largest economy’s stock market ended the day on a stronger note.
The weekly unemployment claims exceeded estimates, indicating a tight labour market that would prevent the U.S. Federal Reserve from raising interest rates further.
Asian markets also rose as the Bank of Japan kept its ultra-easy monetary policy in place.