Has Indian stock market topped out after hitting life-time high — explained
Stock market: Indian stock market has remained highly bullish after ushering in July 2023 as all indices have hit life-time highs respectively. In fact, on Friday last week, all three key benchmark indices Nifty, Sensex and Bank Nifty hit record high whereas small-cap and mid-cap indices too climbed to a new peak.
However, Indian stocks are trading sideways for the last two sessions (though Nifty today has hit a new high of 19,464), triggering speculations whether Dalal Street has topped out after rising to record highs in recent sessions. According to stock market experts, it would premature to assume Indian stock market topping out in near two sessions.
They said that in recent rally, support was driven by select auto stocks and banks (both PSU and private). But, if we look at the Nifty heavy weights like Reliance Industries Limited (RIL), HDFC Bank, HDFC Ltd, Infosys, Tata Consultancy Services (TCS) that constitute around 40 per cent weight in the 50-stock index, are yet to participate in this rally they have outperformed by Nifty in YTD time by a huge margin.
In fact, Infosys shares have delivered negative return in YTD while TCS has given 1.75 per cent return to its investors in 2023. Experts went on to add that in coming times, leadership in market rally is expected to come from FMCG and Capital Goods while PSU banks and select auto stocks are expected to continue supporting that fresh round of rally.
They advised long term investors to look at FMCG, Capital Goods, IT and Reliance shares for higher return in upcoming sessions. On whether Indian stock market has topped out after hitting record highs in recent sessions, Saurabh Jain, Vice President — Research at SMC Global Securities said, "It is premature to say
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