Indian stocks trade steady after hitting all-time highs

New Delhi [India], July 7 (ANI): Indian stocks were largely steady Friday morning as investors seemed to be holding back from putting fresh bets in the markets in the short run. The stock indices have been hitting their all-time highs and are at their peaks currently.

Sensex and Nifty were just a little below 0.1 per cent down this morning.
Last week, the indices accumulated around 3 per cent gains each, their highest in months, and hit their fresh all-time highs.

Notably, Sensex crossed the 65,000 mark for the first time this week. The consistent inflow of foreign funds, firm economic outlook, and moderation in inflation supported Indian stocks recently.

For fresh cues going ahead, investors await April-June earnings data of Indian companies, expected to pour in starting next week.

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said there has been a surge in new demat account openings during the ongoing market rallies.

“This direct correlation between new demat account openings and market rallies holds good during the ongoing rally,too. The sharp 15 per cent rise in the Nifty from the March lows and the news and stories surrounding the consequent wealth creation is attracting new investors,” Vijayakumar said.

“There is a negative dimension to this retail exuberance. The new investors normally chase low-grade small-caps which slowly run into bubble territory. There are signs of this happening now. Seasoned investors normally take this as a sign of caution,” he added.

One aspect that is supporting the Indian markets is the consistent inflows of foreign funds.

Foreign portfolio investors (FPIs) have remained net buyers in Indian stock markets for the fourth straight month, according to data from the National Securities Depository (NSDL). FPIs bought Indian stocks worth Rs 7,936 crore, Rs 11,631 crore, Rs 43,838 crore, and Rs 47,148 crore in March, April, May, and June, respectively, data showed.