Mumbai: Two weeks back, the Indian stock market had hit 30,000-mark. Once again on Wednesday, the market created record as benchmark indices got past record closing high levels.
"We believe the markets to continue this upward momentum. As the companies are able to post good earnings and now on the anticipation of better than normal monsoon, we expect markets to enjoy positive sentiments and see Nifty touching 9,500 in the coming session," said Foram Parekh, Research Analyst, Bonanza Portfolio Ltd.
Monsoon factor: The Indian Meteorological Department (IMD) yesterday said monsoon rainfall will be higher than earlier forecast, which means good news for the rural economy. The NSE 50-share Nifty index opened higher at 9,339.65 and hit an intra-day all-time high of 9,414.75 before ending at 9,407.30, up 90.45 points, or 0.97 percent.
"The Met Department's bullish monsoon forecast eased concerns over El Nino weather conditions and added further legs to the ongoing rally. Earnings positivity has obviously
been keeping markets buoyant and prospects of FII turning buyers in equities also kept markets soar higher," said Anand James, Chief Market Strategist, Geojit Financial Services Ltd.
Domestic investors: Domestic investors are taking a prominent position in equities and a surge in mutual fund inflows has reduced vulnerability of the Indian stock market to foreign fund flows. According to Deutsche Bank's India Equity Strategy Report, domestic institutional inflows are becoming a meaningful determinant of market performance.
An analysis of monthly equity inflows and MSCI India performance shows that between 2004 and April 2014, periods of FII selling coincided with MSCI India declining by 7 per cent, the report said.
Mutual funds' equity and ELSS (Equity Linked Savings Scheme) schemes saw aggregate net inflows of Rs 94 billion (USD 1.5 billion) in April 2017 -- more than twice the April 2016 inflow and 61 per cent higher than past 12 month average.