At a time when the markets run low because of the holidays, the Indian benchmarks are putting up strong moves. The BSE Sensex zoomed to over 71,800 as of afternoon trade, just 95 points shy of scaling record highs, while the NSE Nifty 50 hit fresh all-time high of 21594.05 points. Much support for the domestic markets was lent from the US where the S&P 500 index neared all-time highs.
As of afternoon trade, broader indices also fared well, outperforming the benchmarks. Nifty Midcap 100 and Nifty Smallcap 100 surged 0.5 percent and 0.7 percent.
But, analysts continue to flag over-excessive valuations in these segments. “A correction in broader market is inevitable,”All sectors swam in a sea of green on December 27. The leaders among the pack emerged to be PSU Bank and Metals. Both these sectors gained over 1 percent each in the morning deals.
Several public sector banks have raised capital from the market and have shored up their capitalisation levels, which will enable healthy balance sheet growth, particularly as the capex cycle recovers after the general elections.
Overall, analysts recommend traders to adopt the strategic buy-in-dips in order to capitalise on the upward momentum in the market.
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