Stocks rise marginally to touch fresh highs

Sensex and Nifty’s fresh highs are 66,795.14 points and 19,749.25 points

Indian stock indices extended their gains from the previous session and touched fresh highs on Tuesday.

Sensex and Nifty’s fresh highs are 66,795.14 points and 19,749.25 points. Among the Nifty sectoral indices, Nifty bank, Nifty private bank, and Nifty oil and gas were the top gainers, NSE data showed.

The consistent inflow of foreign portfolio funds, firm economic outlook, firm global markets, and a relative moderation in inflation contributed to the latest bull run in Indian stocks.

Foreign portfolio investors (FPIs) have remained net buyers in Indian stock markets for the fifth straight month, according to data from the National Securities Depository (NSDL).

FPIs bought Indian stocks worth Rs 7,936 crore, Rs 11,631 crore, Rs 43,838 crore, and Rs 47,148 crore in March, April, May, and June, respectively, data showed. In July too, the trend is firm as they bought Rs 30,660 crore worth of equities.

The constant rise in Indian stock indices was maintained even after the retail inflation data for June showed a considerable uptick.

Bucking the trend, retail inflation in India rose considerably in June to 4.81 per cent, largely due to a sharp spurt in vegetable prices. Besides vegetables, meat and fish; eggs; pulses and products; spices indices too saw an uptick.

Meanwhile, several analysts have pointed out that any further rally from the current levels is unlikely as valuations are higher.