Indian markets settled on a strong note on Monday on the back of Modi speech and strong economic growth data for April-June quarter. Nifty hits new record high and closed above 8,000 mark. Metal, capital goods and realty stocks witnessed a gain whereas FMCG stocks registered a fall.
At the close, the benchmark 30-share index, BSE Sensex gained 229.44 points or 0.86% at 26,867.55 with 20 components posting rise. Meanwhile, the broad based NSE Nifty went up by 73.35 points or 0.92% at 8,027.70.
Commenting on the same, Motilal Oswal, CMD, Motilal Oswal Financial Services, said,''We seem to be in the initial stages of a bull phase. Reasonable valuations relative to other emerging markets, coupled with healthy growth prospects for the economy, lead us to believe that we should move to a bull phase over the next few years. The government is also making the right noises in terms of Speeding up clearances of the stalled projects and focusing upon opening up key sectors for FDI. The headwinds to growth are seeing some positive outlook. I remain bullish on the markets in the medium to long term.''
Nidhi Saraswat, senior research analyst, Bonanza Portfolio, said, ''In coming week, 8,050 shall be crucial deciding level in near term, and index is likely to witness further buying above this level. Above 8,050, likely target is 8,100-8,150, while below 7,980, likely target is 7,950-7,900.''
Meanwhile, Jayant Manglik, president-retail distribution, Religare Securities, said, ''We believe this prevailing positivity will extend further and index will continue to scale to newer highs in days to come, so one should opt for buy on dips approach till Nifty is sustaining above 7,850 mark. Besides, give first prefer to the frontline counters for trading and investment activities as mostly are in sync with the benchmark and highly liquid as well. On sectoral front, Banking mainly private, Energy and Capital goods looks good on chart for the next session so plan accordingly.''
Ajay Bodke, head, Investment Strategy & Advisory at Prabhudas Lilladher, said, ''Strong 1Q FY14-15 GDP numbers at 5.7%, encouraging trends on macro-economic parameters due to the government and RBI’s strenuous efforts over the last year on the external front leading to strengthening of Rupee, lowering of CAD under 2% of GDP and fiscal deficit at 4.1% of GDP, softening crude prices despite flare-up in geo-political tensions in multiple theaters, better than initially expected spread of monsoons and sowing in kharif season and revival of animal spirits due to persistent efforts by the Modi government to revive manufacturing, create jobs and hack through the thicket of regulatory labyrinth to rev-up the sputtering engine of growth is responsible for the buoyancy in Indian markets.''
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