At 9:32 AM, the S&P BSE Sensex traded 134 points to 82,992, while the NSE Nifty 50 gained 10 points, or .04%, to 25,000 mark at 25,060.
On the 30-stock Sensex pack, the shares of Bajaj Finserv, Reliance Industries, Trent, ICICI Bank and Tata Motors were leading gainers, advancing between 0.4% and 2%.
Among sectors, financials added 0.3%, leading the advance, while banking and public-sector banks indices edged up 0.2% each.
In the broader market, mid-cap stocks rose 0.3% and small-caps gained 0.5%.
Meanwhile, insurance stocks advanced after a panel of state finance ministers proposed exempting health and life insurance premiums for individuals from the goods and services tax, with HDFC Life Insurance and SBI Life Insurance each climbing about 1%.
Expert Views
An interesting trend in the market is the steady up move in India in contrast to the down trend in the U.S., said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, adding that while concerns of potential rising inflation in the U.S. is weighing on the market there, the bold reform initiatives in India and the sustained money flows into the market are imparting resilience to the market. Investors have to be vigilant about valuations in this market, Vijayakumar said, “Despite the many headwinds, valuations are high. Out of the BSE 500 stocks, 215 are trading at PEs above 50. Large-cap valuations, though high, are justified given India’s long-term growth potential. Many midcaps have the support of strong growth. But small caps are excessively valued and, therefore, risky. Investors have to make this distinction.”On a technical basis, Anand James, Chief Market Strategist at Geojit Investments, noted that Nifty’s rally lost momentum near 25,096—the initial upside target for the previous session—and with the index now nearing the upper Bollinger band, the likelihood of consolidation increases, casting doubt on a full move toward the 25,156–25,200 zone.
“A collapse is less likely, but dips to 25000-24977 or lower may be expected before yet another upswing is attempted,” said James