At 22,135.40, the benchmark index Nifty 50 reached a new all-time high, with the automotive, pharmaceutical, and consumer durables sectors driving the gains.
The Nifty was up 101.00 points, or 0.46 percent, at 22,141.70, while the Sensex was up 296.86 points, or 0.41 percent, at 72,723.50 at 11:18 a.m. A little over 2,170 shares increased, 1,162 fell, and 110 were unchanged.
All market indices were trading higher in the overall market, while the India VIX fear gauge increased 5.14 percent to levels of 15.99.
At roughly 46,572, the Bank Nifty saw a gain of nearly 200 points, with Bandhan Bank, ICICI Bank, and AU topping the gains.
“There is tremendous investor confidence among domestic investors. Even when FPIs are selling occasionally like in the months of October and November, domestic investors are showing confidence in the market, backed by fundamentals,” mentioned Nilesh Shah, CEO, Kotak MF in conversation with CNBC-TV18.
Shah continued, saying that strong market strength—along with a few pockets of exuberance—better governance relative to peers, and profits growth in the third quarter of the current fiscal year are all driving increased involvement.
On the basis of risk adjusted returns, largecaps appear much superior to mid and smallcaps, he stated. VK Vijayakumar, chief investment strategist at Geojit Financial Services, stated that although sales growth is only ordinary, EBITDA and profit after tax are increasing substantially.
There is a notable increase in credit and rising profitability in banking. According to him, PSU banks are outperforming private sector banks because of their cheap valuations, which hold true despite the current spike in prices.
