1. FIIs and DIIs are buying shares in the cash market
Foreign institutional investors (FIIs) and domestic institutional investors (DIIs) have been net buyers in the Indian stock market in recent months. In the month of May, FIIs bought shares worth ₹17,423 crore, while DIIs bought shares worth ₹12,077 crore. This has helped to support the Indian stock market and keep it near all-time highs.
2. Global cues are positive
The global stock market has been on a bull run in recent months. The US stock market has hit record highs, and the European stock market has also been performing well. This has created a positive sentiment for the Indian stock market, and has made investors more confident about investing in Indian stocks.
3. Unusual activities in Dec Expiry Options
There have been some unusual activities in the December expiry options contract. The open interest in the contract has increased significantly, and the implied volatility has also increased. This suggests that there is a lot of speculation in the market, and that investors are expecting a big move in the market in the coming months.
4. Mid cap & Bank Nifty hit All Time High already
The mid-cap and bank indices have already hit all-time highs. This suggests that there is still a lot of buying interest in the market, and that investors are confident about the future prospects of the Indian economy.
5. Markets near all time time high despite huge under performance by 6 out of top 7 index heavyweights
The Nifty 50 index is near all-time highs, even though six out of the top seven index heavyweights have underperformed the index in the past one year. This suggests that there is a lot of buying interest in the market from investors who are looking for stocks that are trading at attractive valuations.
Overall, there are a number of factors that are making me bullish on the Indian stock market. These factors include:
- Net buying by FIIs and DIIs
- Positive global cues
- Unusual activities in the December expiry options contract
- All-time highs in the mid-cap and bank indices
- Underperformance of the top seven index heavyweights
I believe that the Indian stock market is poised for further gains in the coming months. However, it is important to remember that the stock market is volatile, and there is always the risk of a correction. Investors should always do their own research before making any investment decisions.
Here are some of the risks that investors should be aware of:
- The global economy could slow down, which could impact the Indian economy.
- The Indian government could introduce new taxes or regulations, which could hurt the stock market.
- There could be a major sell-off in the global stock market, which could trigger a sell-off in the Indian stock market.
Despite these risks, I believe that the Indian stock market is still a good investment for the long term. The Indian economy is growing at a healthy pace, and there are a number of good companies listed on the Indian stock market. Investors who are looking for long-term growth should consider investing in the Indian stock market.