The Indian stock market is witnessing healthy buying interest, as an India-US trade deal, the return of foreign institutional investors (FIIs), and easing geopolitical tensions boost market sentiment.
The Nifty 50 is getting closer to the 26,000 mark, while the Sensex has risen over 1,000 points to hover near 84,400. At present, both key indices are just about 2% below their record high levels. Experts say if the momentum sustains, the benchmarks may hit all-time highs sooner than expected.
Key factors that can drive the Sensex, Nifty 50 to record highs
Experts highlight the following five factors that can drive the key indices to their record high levels in the next few days:
1. Strong foreign capital inflows
After selling Indian stocks in the cash segment for seven consecutive months from July to January, FIIs have turned net buyers in February. As per available data, FIIs have bought Indian stocks worth ₹4,900 crore in the cash segment in February till the 9th.
FIIs are expected to remain net buyers in the near term, supported by a weaker dollar, expectations of further rate cuts by the US Federal Reserve, and attractive valuations in Indian large-cap stocks.
Furthermore, FIIs remain heavily short in the derivatives segment, raising the possibility of short covering as the rupee strengthens and India’s macroeconomic outlook improves.
(This is a developing story. Please check back for fresh updates.)
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
