The Indian stock market on Thursday opened on a positive note with both the Sensex and Nifty indices trading near their all-time highs.
Sensex was in the green at the opening bell going up by 179.77 points to stand at 67,646.76, while the Nifty also opened on a positive note to post a gain of 66.35 points to take it to 20,136.65.
As many as 22 out of the listed companies on Nifty were in the advancing category, while 27 were witnessing drops, and one remained unchanged pointing to a mixed sentiment among investors.
Wipro, Adani Enterprises, M&M, Coal India, and SBI were among the gainers as LTIMindtree, SBI Life, Sun Pharma, Axis Bank, and Asian Paints stood among the top losers.
The founder and managing director of Profit Idea, Varun Agarwal analysed the situation and expressed his optimism about the direction fo the market.
He said, "Strong put writing around 19,500 PE (price to earning ratio) indicates a positive market bias. The small and mid-cap ratio favors bullish momentum, and we are only halfway through the channel. It's clear that the bull run in small-caps is not over, and corrections are healthy for the market."
"The ratio is only halfway done, meaning that we are in the middle point of the channel at 0.62, and the top end is at 0.85. It will take time to get there, and the bull run in small-caps is not over. Near-term corrections are good at shaking out weak hands as we go along," added Aggarwal.
Meanwhile, several sectors like IT, Infrastructure, Media, Banks, and Pharma stocks were promising with specific mid and small-cap stocks having the potential for significant growth from current levels.
Aggarwal further said, "IT, Infra, Media, Banks, and Pharma stocks are looking favorable. Specific mid and small-cap stocks can still multiply from current levels."
The recent robust performance of the stock market is partially attributed to India's strong GDP growth rate of 7.8 per cent in the first quarter (April-June) of the fiscal year 2023-24. This positive economic outlook, coupled with continued foreign portfolio investments, has bolstered investor confidence.
Global markets, particularly in the United States, are also being closely monitored. The anticipation of the August inflation data release, expected to shed light on the US Federal Reserve's monetary policy decisions, has influenced market sentiments.
With consumer inflation reaching 3.2 per cent in July 2023, investors are keen to see if the Federal Reserve will adjust its policies in its upcoming meeting scheduled for September 19-20.
As the trading day progresses, market participants will closely monitor developments and economic indicators to gauge the market's direction in the coming days.
The Indian stock market remains poised for further excitement as it flirts with record-breaking highs.
