The S&P 500 and Nasdaq rose to their highest levels in 14 months on Thursday as investors cheered economic data that raised bets US Federal Reserve Reuters reported that is nearing the end of its aggressive interest rate hike campaign. The S&P 500 recorded 24 new 52-week highs and no new lows, while the Nasdaq recorded 90 new highs and 36 new lows. Brokers and analysts said a strengthening rupee and strong buying by foreign funds helped the market rally in recent weeks.
However, the widening of the trade deficit to over $20 billion for April was a detriment, he said. CDSL data shows that foreign portfolio investors (FPIs) have bought shares worth about Rs 60,000 crore since May 1.
During Friday’s session, most index heavyweights such as HDFC twins, RIL, ITC and ICICI Bank contributed to the day’s gains, showed BSE data. On the NSE too, the Nifty rose 138 points to 18,826, as against the day’s high of 18,865, just 23 points away from its all-time peak of 18,888. Vinod Nair, Geojit Financial Services, said positive cues from global markets as well as strong buying in banking, pharma and consumer stocks led to the rise in the domestic market. “U.S. market optimism was fueled by better-than-expected retail sales reflecting the strength of the economy. In addition, jobless claims remained high and falling import prices raised hopes of a longer pause in interest rate hikes by the US Fed., contradicted his announcement of possible future rate hikes the previous day. ,
The day’s gains also helped investors gain Rs 2 lakh crore on Thursday and BSE’s market capitalization now stands at Rs 295.5 lakh crore. This is the new all-time high of market cap of BSE.
Bloomberg reported that investors are assessing whether India could be the next China as investment options in the emerging market become challenging. Analysts were quoted as saying that India is “bridging the gap” with China which is facing “increasing scrutiny over slowing growth”. “While India was China in 2007 on several economic metrics such as the size of the economy and GDP per capita, its equities have consistently outperformed China and emerging markets over the long and near term,” the report said.
Domestic brokers are also speaking on the matter, with recent data suggesting that China’s growth prospects, which were expected to rise since the opening up of its economy, have turned muted.