Nifty above 20,000: India best-performing market in September; What lies ahead?
Domestic benchmark indices Sensex and Nifty hit their fresh record highs this week with frontline index Nifty50 breaching the psychological 20,000-mark on the back of strong macroeconomic indicators such as lower consumer price index (CPI) print, demand optimism in China, and hints of a pause in rate hike by the US Federal Reserve.
On Friday, September 15, Sensex closed at 67,838.63, up 320 points, or 0.47 per cent, while the Nifty settled at 20,192.35, rising 89 points, or 0.44 per cent. Both indices ended at their fresh closing highs on gains led by banking, auto and IT heavyweights, including HDFC Bank, TCS and Mahindra and Mahindra.
On the current bullish momentum, market analysts observed that India emerged as the best-performing large market in September with gains of over 4.5 per cent on several key indicators such as domestic fundamentals, success of the G20 Summit, positive global cues, and a renewed interest of foreign investors.
“India has become the best performing large market in September with 4.2 per cent gains. This move to record highs breaching the psychological 20000 mark on the Nifty has been achieved with an impressive 4.3 per cent rise in Bank Nifty. Since financials account for 32 per cent weightage in the Nifty, strength in financials, particularly the banks, can keep the Nifty resilient,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
‘’More importantly, the valuations of banking stocks are even now fair. Strength in banking stocks can impart resilience to the market even though the overall market valuations are slowly rising beyond comfort levels,” added Dr. V K Vijayakumar.
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Updated: 16 Sep 2023, 08:11 PM IST
