Over the past week, Indian stock indices have maintained an upward trajectory, reaching new record highs when trading resumed on Monday following Modi and his council of ministers’ swearing-in ceremony.
Earlier in the day, sensex was at 76,890.34, which was up by 0.3 per cent, while Nifty stood 23,372 points, which was up by 0.4 per cent. But later, they hit the record high at 76,960.96 points and 23,411.90 points respectively.
Thus, most of the indices in Green. According to analysts, investors will continue to focus on upcoming US Fed interest rate decision, India’s inflation data (both retail and wholesale) and new government’s decisions, as the week progresses.
In addition, the allotment of ministry portfolios to new ministers will be closely monitored by the market.
Earlier, India’s retail inflation has decreased to 4.83 per cent in April, against 4.85 per cent in March.
But the consumer food price inflation has drastically increased to 8.70 per cent against 8.52 per cent, the previous month.
However currently for now, retail inflation remains within the RBI’s comfort zone of 2-6 percent. But it is still above optimal 4 percent zone.
Meanwhile, Dalal Street, anticipating a historic surge following the exit polls, was taken by surprise the next day. On June 4, the market witnessed a significant downturn, with the Sensex dropping by 4,389.73 points and the Nifty declining by 1,379.40 points, marking a substantial downturn.
As a result, during election results announcement, Indian stocks experienced a significant downturn. Thus, causing losses. But eventually, the losses recovered over next sessions and indices reached the record high.
Talking about future, chief investment strategist VK Vijayakumar of Geojit Financial services said, ‘After the roller coaster ride last week the market is likely to take a breather in the near-term. It is important to understand that the major driving force in this bull market is the Indian retail investors including HNIs. Big selling by FIIs is getting eclipsed by the aggressive buying of DIIs and retail investors. The fact that retail investors bought equity for Rs 21179 crores on June 4th, the day Nifty tanked 5.9 per cent, indicates the buying power and optimism of the retail investors.’