1. Nifty’s Strong Performance: This year, Nifty has reached record highs for seven consecutive days, indicating its robust performance. According to V K Vijayakumar from Geojit Financial Services, the market is showing great strength.
2. Impact of US Bond Yields: Despite concerns about rising bond yields in the US affecting emerging markets, India remains unaffected. Foreign Institutional Investors (FIIs) have reduced selling as sustained Domestic Institutional Investor (DII) buying, supported by retail enthusiasm, neutralizes their impact.
3. Resilient Domestic Buying: Domestic buying, especially from retail investors, is the primary force supporting the ongoing market rally. The strong performance of the Indian economy and improving corporate earnings adds fundamental support.
4. Positive Signals from Large Private Banks: The participation of fairly valued large private banks in the market rally is viewed as a positive signal, potentially contributing to sustained growth. However, experts caution against irrational exuberance in certain areas of the broader market, advising retail investors to remain cautious.
5. Technical Analysis and Future Outlook: According to Vaishali Parekh of Prabhudas Lilladher, Nifty breached the 22,200 zone, with a near-term target of 22,400 and a potential rise to 22,800. BSE Sensex is trading positively, currently at 73,069.64 points, with metal stocks like JSW Steel and Tata Steel showing a 2% increase.