The Indian stock market started strong on Thursday, with both Nifty50 and BSE Sensex opening in green.
- Nifty50 was trading near 25,100, up 44 points (0.18%) at 9:16 AM.
- Sensex crossed the 82,000 mark, up 176 points (0.21%) at 82,033.
Why the Market is Rising
Experts say India’s markets are showing strength due to:
- Government reforms and policy support.
- Increased consumer spending.
- Lower inflation, which stood at 1.55% in July. This also raises hopes of another interest rate cut by the RBI, though global uncertainty keeps the central bank cautious.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that India’s market is moving up steadily, unlike the US, where inflation concerns are pulling stocks down.
Investor Caution on Valuations
While large-cap stocks are still considered fairly valued due to India’s growth potential, analysts warn that:
- Many mid-cap stocks are backed by strong growth.
- Small-cap stocks are highly priced and risky.
- Out of the BSE 500 stocks, 215 are trading at very high price-to-earnings (PE) ratios above 50.
Global Market Trends
- In the US, Nasdaq and S&P 500 fell on Wednesday as investors shifted from costly tech stocks to cheaper sectors. Everyone is waiting for the Federal Reserve’s statement at the Jackson Hole symposium for policy signals.
- Gold prices remained unchanged ahead of the Fed meeting.
- Oil prices rose slightly after US crude oil and fuel stocks dropped, showing steady demand.
Read more: Global gold surge: Ventura forecasts $3,600/oz in 2025, India sees record ETF participation
Investor Activity
- Foreign investors (FPIs) sold shares worth ₹1,100 crore on Wednesday.
- Domestic institutional investors (DIIs), however, bought shares worth ₹1,806 crore, supporting the market
