Indices touching all-time highs, what should your next step be?
FPIs are also aggressively investing in India. As on July 3, 2023, FPI inflows stood at Rs 11,791.86 crores, extending the investments green run into a consecutive 6th month.
Flush with positive investor sentiment, market indices Nifty and Sensex both touched record highs today. While BSE Sensex inched up 486 points to close at 65,205.05 points, Nifty followed suit, notching 133 points to close at 19,322.55 points.
The combined market capitalization of all companies listed on BSE after June 30th was Rs 2.96 lakh crore. This rose to Rs 2.98 lakh crores at the end of today’s trading. This means investors gained around Rs 2 lakh crore during a single session, thanks to market buoyancy.
The rally is partly driven by a boost in US-based indices, which, in turn, have a trickle down effect on Indian markets. Fears of an impending recession looming on the US economy have been dispelled by US banks faring well under Fed’s stress test, which assesses a bank’s ability to bear a hypothetical, serious economic downturn. Other economic data, including stronger-than-expected employment statistics, further fueled the growth.
Moreover, FPIs (foreign portfolio investments) are also aggressively investing in India. As on July 3, 2023, FPI inflows stood at Rs 11,791.86 crores, extending the investments green run into a consecutive 6th month. Till date, FPIs have invested around Rs 88, 257 crores in Indian equities.
Closer home, energy (+2.08%), FMCG (+1.09%), metal (+2.28%), financial services (+1.02%) fared well on BSE today, while IT (-0.43%) and Auto (-0.44%) dragged down. But what do these regular market fluctuations mean for you?
Stick to your goals
On a daily basis, the green and reds of stock markets may seem tempting, but you should not base your decisions on them. Wealth creation is a long-term game, and regular ups and downs like these have little impact on your portfolio in the long-run.
Says Agra-based founder of Funds Veda Shifali Satsangee, “Considering intermittent volatility, it would be pertinent to invest in multi asset products, aggressive hybrid categories, dynamic asset allocation products and equity savings.
However, whilst investing, investors must be aware of their risk appetite and take a goal oriented approach. One must ensure that they do not get irrationally exuberant by short-term gains and follow a sound approach while investing. It would make sense to invest via the SIP route when we have seen good past returns”, she notes.