Automobile, pharma rally hits bulls’ high
Indian benchmark indices soared to fresh all-time highs on Tuesday, led by gains in auto and pharmaceutical stocks. Analysts said the uninterrupted rise in equities since the election results on June 4 has resulted in an overbought market, although a big reversal is unlikely for the moment.
NSE's Nifty rose 112.65 points or 0.46% to close at 24,433.20, having hit a lifetime high of 24,443.60 during the day. BSE's Sensex rose 391.26 points or 0.49% to end at 80,351.64, down from an intraday record of 80,397.17.
«We have seen the markets go up due to rising flows in the system, as indicated by the all-time-high flows of about ₹40,000 crore in the mutual fund industry in June,» said Sumit Agrawal, senior vice president and fund manager at Bandhan AMC.
Some Consolidation Likely Ahead | page 11
«A lot of these flows are coming into sectoral and thematic funds, and passive funds, which has led to increased fund deployment despite expensive valuations, leading the markets further up, » said Agrawal.
Investors were awaiting US Federal Reserve chair Jerome Powell's Congressional testimony on Tuesday and Wednesday, to see his response to questions on interest rates and inflation. Powell said in his remarks to Congress later in the day that Federal Reserve faces a cooling job market as well as persistently high prices, a shift in emphasis away from its single-minded fight against inflation of the past two years that suggests Fed is moving closer to cutting interest rates.
Nifty's auto, consumer durables and pharma
