India Stocks: Adani, financials lift Indian shares to record highs

Housing Development Finance

28/06/2023 06:20

(Updated at 10:47 a.m. IST)
    By Bharath Rajeswaran
       BENGALURU, June 28 (Reuters) - India's blue-chip Nifty
50 hit a record high on Wednesday after struggling to breach the
level for several sessions, lifted by gains in Adani group
stocks and heavyweight financials, with foreign fund inflows and
a monsoon revival providing support.
        The Nifty  .NSEI  index rose as much as 0.56% to a
record high of 18,923.10, as of 10:47 a.m. IST. 
    The index last hit a new peak in December 2022 and was just
shy of the all-time high last week before hawkish central bank
commentary spooked investors.
        The S&P BSE Sensex  .BSESN  also rose 0.52% to a fresh
all-time high of 63,745.57 on Wednesday. The Sensex had already
hit a record high last week, while the midcaps  .NIFMDCP100  and
smallcaps  .NIFSMCP100  hovered around fresh record and 52-week
highs, respectively.
    The moves in the local indexes contrasted with a sombre mood
in Asian peers, where global growth concerns overshadowed upbeat
U.S. economic news. TMSCI's broadest index of Asia-Pacific
shares outside Japan  .MIAPJ0000PUS  was little changed on
Wednesday.  MKTS/GLOB 
     
  
   Analysts, however, cautioned that while near-term triggers
such as a revival in monsoons could provide some support, the
market could consolidate again as valuations were at
uncomfortable levels.
    "We feel that now is the time to book some profits and sit
on the sidelines. There's no valuation comfort at this level,"
said Samrat Dasgupta, CEO, Esquire Capital Investment Advisors,
adding that much of the rally was driven by foreign fund
inflows.
    Foreign portfolio investors have bought 859.83 billion
rupees ($10.49 billion) worth of equities in fiscal 2024 so far,
after offloading 1.4 trillion rupees and 376.32 billion rupees
in FY22 and FY23, respectively.
    Most sectoral indexes logged gains, with HDFC  HDFC.NS  and
HDFC Bank  HDBK.NS  extending gains after announcing plans to
complete their proposed merger on July 1.
    The Adani Group's flagship Adani Enterprises  ADEL.NS  was
the top gainer on the Nifty, rising as much as 4.6% on several
block deals.


($1 = 81.9950 Indian rupees)

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India's Nifty 50 outperforms Asian peers in 2023    https://tmsnrt.rs/43hS4xX
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 (Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sonia
Cheema and Janane Venkatraman)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))