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The benchmark indices rose for the fifth straight session on Thursday amid positive global cues. Nifty closed above 25,000 for the first time, rallying 1,000 points in 24 sessions, the third-fastest in the index’s history. The Sensex rose 0.15 per cent to 81,867.
The upmove is despite the initial negative reaction to the Union Budget, developments on the Israel-Hamas front, deepening US-China trade tensions, uninspiring Q1 results from Indian companies and US megacap tech sell-off.
“The possibility of lower interest rates going forward and liquidity are driving markets higher,” said Andrew Holland, CEO, Avendus Capital Alternate Strategies.
The US Federal Reserve maintained a status quo on key interest rates on Wednesday but hinted at the possibility of a rate cut at its next meeting in September. Domestic institutional investors shopped for shares worth over ₹23,000 crore in July, taking their year-to-date purchases to over ₹2.5 lakh crore in the cash market.
“There are so many factors that should bring the market down. The geopolitical tensions in Israel-Iran-Iraq, for one. The earnings season has not been that not great; if anything we have seen more downgrades than upgrades. Valuations remain challenging and it’s hard to find anything that is compelling,” Holland said.
While valuations of Indian markets continue to remain elevated, fund flows could help Nifty head higher with some intermittent corrections, said experts.
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