Indian stocks rally to historic highs amid bullish investor sentiment
by RT
Indian stocks rally to historic highs amid bullish investor sentiment
New milestones have been hit by India’s stocks this week which were cheered up by foreign investors pumping the highest amount of funds into the market since March.
Foreign funds have invested net $2.27 billion in Indian equities so far this month, Bloomberg statistics show.The S&P BSE Sensex grew 0.5 percent on Tuesday, hitting a record high of 41,120. The NSE Nifty 50 Index scaled a lifetime peak of 12,132. All Nifty sectoral indices were trading in the green, led by the Nifty Metal Index, which was up 0.8 percent.The Indian currency rupee has also gained, rising to 71.59 against the US dollar.
“When the liquidity flow from foreign investors is there, it’s a tsunami and we need to enjoy it,” A. K. Prabhakar, head of research at IDBI Capital Market Services in Mumbai told Bloomberg. “The bullish sentiment may continue till the end of the year.”
Investors are likely to reallocate capital back to the stock market if global growth revives, Dhiraj Relli, CEO of HDFC Securities, said.“Companies have started enquiring about fresh loans and there are initial signs of the economy starting to recover. October and November were better than August,” he said, as quoted by the Economic Times. “Real recovery may start from January, 2020,” he added.
India’s third-quarter economic numbers are to be released on Friday. Rating agency Moody’s has cut its India outlook to negative this month. Veteran investor Mark Mobius has called the move a mistake, pointing out that the country is enjoying “incredible” growth in contrast to many other states.
