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India stocks rally may have a tough fight amid stretched signals

Synopsis

Indian equities rally may cool as technicals suggest overbought conditions for NSE Nifty 50 index. Investors optimistic due to Modi government's commitment to pro-growth policies. Global funds boost market with $3.1 billion in net purchases. June sees market recovery from selloff with increased bullish sentiment. Market value hits $5 trillion amid record-setting rally.

Indian stock marketANI
The record-setting rally in Indian equities looks set to cool as technicals show the run is now looking stretched.

The relative strength index — a measure of short-term momentum — for the NSE Nifty 50 index moved deeper into overbought zone Tuesday after rising above 70 a day prior for the first time since January. This comes as the gauge capped its fifth straight quarter of advance, the longest stretch since 2021, boosting the nation’s market value to $5 trillion.

Indian equities have climbed by more than 10% since a selloff early last month, as investors cheered a commitment by Prime Minister Narendra Modi’s coalition government for continuity of pro-growth policies. Global funds returned to the nation’s stocks, with net purchases of $3.1 billion in June, providing a further boost to the bullish fervor.

BloombergBloomberg



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(You can now subscribe to our ETMarkets WhatsApp channel)

(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

...more