Nifty hit six new record highs this year indicating India's bull market

NEW DELHI — This year alone, Nifty has set six new record highs during intraday trade and this is indicative of the strong momentum in the market, says V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

An important characteristic of the bull market is its ability to set new successive record highs and this market has been doing this consistently, he said.

Selling by FIIs, triggered by rising bond yields in the US, is having no impact on this up trending market where DIIs bought INR17850 crores in February so far and domestic HNIs and retail investors are calling the shots, he added.

High quality fundamentally strong largecaps like RIL, ICICI Bank and Bharti taking up the leadership in the rally is positive for the bulls. Also it is important to remember that large caps have valuation comfort in this market where segments of the broader markets have tipped into frothy valuations. Since the Bank Nifty is around 4% away from its record high, more action is likely in banking stocks.

In the near-term, volatility will be high. Sharp corrections can happen at any time, he said.

Deepak Jasani, Head of Retail Research, HDFC Securities, said Goldman Sachs upgraded its rating on global equities to "overweight" on prospects of economic growth and recovery in manufacturing activity, after starting the year with a "neutral" rating across assets

Asian shares were pinned below 1-1/2 month highs on Tuesday as even a larger-than-expected interest rate cut in China failed to excite investors jaded at the lack of bigger stimulus measures, he said.