Sensex, Nifty remain positive Midcap outperforms, HDFC leads

HDFC and Reliance Industries were the leading contributors to Sensex’s gains, up 1.5 percent each. Hero Motocorp shares touched a record high of Rs 3,553.55 intraday, up 3.5 percent.

With the liquidity surge in emerging markets, benchmark Indian indices have gained close to 17-18 percent over last few months but Rahul Chadha of Mirae Asset Global Investments believes liquidity without fundamentals means the gains cannot be held for long.


Stock Market News Today- Sai Proficient
                  Stock Market News Today- Sai Proficient

But, from a medium term perspective, the central government’s productivity enhancement measures like goods and services tax (GST), dismantling of APMC Act, rural electrification etc mean consumer price inflation (CPI), which has been fairly sticky, goes down creating lot more room for easing of interest rates, he adds.

Similarly, rural economic recovery, jump in foreign direct investments etc. will act as enabling conditions that will bring back earnings growth to support valuations.


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