Indian stock indices continued their upward trajectory, reaching fresh record highs at Monday’s opening bell, following Prime Minister Narendra Modi and his Union Council of Ministers’ oath-taking ceremony. The smooth transition in government formation bolstered market sentiments.
At the opening, Sensex stood at 76,890.34, up 0.3%, and Nifty at 23,372 points, up 0.4%. They hit record highs at 76,960.96 points and 23,411.90 points, respectively. Most sectoral indices showed gains, indicating positive market sentiment.
Throughout the week, investors are expected to monitor the US Fed interest rate decision, India’s inflation data, and the new government’s decisions, including the allocation of ministry portfolios. Retail inflation in India eased to 4.83% in April, but consumer food price inflation rose to 8.70%, slightly above the RBI’s comfort level.
Analysts, including Ajit Mishra from Religare Broking Ltd, suggest keeping an eye on global cues, particularly the upcoming US Fed meeting. The resurgence of sectors like IT and FMCG indicates market resilience. Siddhartha Khemka from Motilal Oswal Financial Services Ltd highlights the forthcoming focus on key cabinet portfolios, anticipating market volatility with an upward bias.
Following the Lok Sabha election results, the market initially witnessed a significant decline, attributed to uncertainties surrounding the incumbent BJP’s performance. However, subsequent sessions saw a recovery, with indices bouncing back to record highs. Retail investors’ significant buying power continues to drive the market, with optimism prevailing in the long term, despite fluctuations in FII activity.
