Mkt may remain buoyant

New Delhi Overall Indian markets, Nifty have remained flat week-on-week barring Wednesday’s uptick which resulted in Nifty making new highs, says Jaykrishna Gandhi, head (Business Development - Institutional Equities), Emkay Global Financial Services. Bank Nifty has under-performed during this period and is poised to lead the rally into July on back of the HDFC merger, he said.

The US markets continued the positive data with consumer confidence climbing to highest levels since January 2022, new home sales jumped 12.2 per cent to highest levels since February 2022, and lastly home prices were up 0.9 per cent in April for the top-20 cities in US.

Trideep Bhattacharya, CIO (Equities), Edelweiss MF, said: “The Nifty all-time high reflects the confluence of two factors, namely, the relative earnings resilience of India Inc. based on strong bottom-up drivers in a difficult global macro environment and post late start, the encouraging recent progress of monsoons across India.

Siddhartha Khemka, head (Retail Research - Broking and Distribution), MOFSL, said: “After making several attempts in the past few days, Nifty finally managed to cross its previous highs.

Strong institutional flows, healthy macros and robust earnings growth drove domestic market towards its new highs. Even the current valuations are reasonable at 19x one-year forward PE which at previous peak had touched a high of 24x.

With monsoon kicking in and RBI taken a rate pause, the strong momentum in earnings is likely to continue. Thus at current valuations, market is expected to continue its upward move and remain buoyant, he said.