At 9.30 am, the BSE Sensex was trading 78.67 points or 0.13 per cent lower at 58,774.40. Nifty50 was trading at 17,496.20, down 28.90 points or 0.16 per cent. The midcap and smallcap indices edged up to 0.16 per cent higher.
“Sensex and Nifty are unlikely to surpass the previous highs because valuations have become expensive and, therefore, there will be selling pressure at higher levels. Nifty50 is now trading at around 20 times FY 23 estimated earnings. High valuation will cap the rally,” VK Vijayakumar, Chief Investment Strategist at
.
Tuesday marked the ninth out of the last 10 sessions when the domestic indices moved north.
“A major positive for India is that FIIs, who were relentless sellers from October 2021 to June 2022, have turned buyers in July and the buying momentum continues in August with net buying of Rs13,801 crore till 8th August. FIIs have turned buyers mainly because the dollar has stopped appreciating and started depreciating. (Dollar index has declined from above 109 to 106),” Vijayakumar said.
Among Sensex stocks,
climbed 1.51 per cent to Rs 849. , and advanced 1.4 per cent, 1 per cent and 0.9 per cent, respectively.
Reliance Industries, , , Dr Reddy’s Labs and added up to 0.6 per cent. Losers included , and , which declined up to 2.4 per cent. , and fell up to 0.8 per cent.
“Traders can continue with their buy on decline strategy but one should avoid being complacent as a momentum trader. Markets are continuing with their vertical move and in such scenario, we do not get any swing lows which generally refer to a strong base,” said Sameet Chavan of Angel One.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)