Mumbai: Indian equity indices have shown robust performance in 2024 driven by a sustained rally in the stock market. Both Sensex and Nifty have recorded nearly 10 percent gains in the first half of 2024, prompting market experts to forecast continued momentum.
Frontline indices such as Sensex and Nifty have been consistently setting new all-time highs in recent days. On Tuesday, Sensex reached a new peak of 79,855, while Nifty climbed to 24,236.
Experts attribute this ongoing rally to substantial Foreign Portfolio Investment (FPI) inflows and expectations of interest rate cuts by the Federal Reserve.
Vinod Nair, Head of Research at Geojit Financial Services, commented, “We expect this trend to persist in the near term, driven by anticipated increases in discretionary spending. Investors are closely monitoring upcoming US job data and the Fed Chair’s statements for further insights into interest rate movements.”
In June alone, FPIs injected Rs 26,565 crore into the Indian stock market, reversing their net selling trend observed in April and May.
Vipul Bhowar, Director of Listed Investments at Waterfield Advisors, highlighted, “Continued government reforms post-election results have enhanced GDP growth forecasts, attracting Foreign Portfolio Investments. FPIs are particularly favoring sectors like financials, automobiles, capital goods, real estate, and selected consumer segments. Future investments are expected to be targeted rather than broad-based.”
