Indian stocks traded marginally higher Tuesday morning apparently due to fresh buying by investors after the recent profit booking. On Monday, they were largely steady.
Benchmark Sensex and Nifty were 0.3 per cent higher each at the time of writing this report. Notably, all Nifty sectoral indices too were in the green, with Nifty media, Nifty metal, and Nifty realty top gainers.
“We feel it is a breather after the recent dip and needs sustainability above 18,600 in Nifty for any meaningful rebound. Meanwhile, participants should prefer defensive viz. pharma and FMCG and choose selectively from others,” said Ajit Mishra, SVP – Technical Research, Religare Broking Ltd.
“We expect the market to consolidate in the near term before resuming the upward journey. Sectors like Auto, and FMCG would be in focus with the progress of the monsoon,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
Last week, Indian stock indices touched their all-time highs. Sensex, so far, accumulated over 3 per cent returns this year, rising about 19 per cent over the past 12 months.
The rise in domestic stocks is in tune with the global market rally and firm domestic macro fundamentals. Strong fundamentals including a firm GDP outlook, moderate inflation and strong purchases by foreign investors saw the markets trading in the green.
The inflation in the US and India is moderating, but what is to be seen going ahead is whether this trend is sustainable.