Indian stocks rise in early trading, mark 5th consecutive week of gains

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NEW DELHI: Indian stocks extended their previous week’s gains this morning, driven by steady buying by overseas portfolio investors.

This is the fifth consecutive week of gains for Indian stocks.

As of 9:27 a.m., Sensex was trading at 59,816.36 points, up 353.58% 0.59%, while Nifty was trading at 17,793.85 points, up 95.70 points or 0 .54%.

Of the Nifty 50 companies, 40 were in the green and the other 10 were in the red, according to data from the National Stock Exchange.

On Monday the markets were closed due to Independence Day.

Meanwhile, retail price inflation in the United States and India has eased somewhat, which has improved investors’ buying sentiment.

Headline retail inflation in India fell to 6.71% in July from 7.01% in June, the lowest level in five months, helped by an easing in food and oil prices, according to National Statistics Office (NSO) data released on Friday.

The benchmarks – Sensex and Nifty – are up more than 11% in the past four weeks on a cumulative basis, recouping all of the losses incurred so far in 2022.

In fact, domestic stock markets marked their best week since February 2021 in July.

Notably, the latest steady rally in Indian stocks has enriched investors by around Rs 21.8 trillion.

“The steady decline in retail inflation, the drop in Brent to USD 94 and the steady buying of FII bodes well for the markets.

However, high valuations are a concern. While remaining invested, investors should exercise caution in pursuing this rally,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

For further clues, investors will be waiting for the July wholesale inflation data to be released later today.

For the record, wholesale inflation in India was 15.18% in June, slightly lower than the 15.88% recorded the previous month.

Inflation based on the Wholesale Price Index (WPI) has been in double digits for 15 consecutive months now.

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