• The Indian stock market started strong with the Nifty index soaring above 24,400, attributed to the booming US markets.
• Market experts advise caution due to rising valuations, and note that Foreign Institutional Investors turning buyers is positive for markets.
• In the banking sector, the Nifty Bank was slightly down, while the Nifty Midcap 100 and Smallcap 100 indices saw gains.
• Experts suggest a cautious investment strategy, advising to remain invested as the market has shown resilience amid challenges.

The Indian stock market started on a high note on Thursday, with the Nifty index soaring above 24,400. Early trade saw a surge in buying in the Nifty IT sector. Around 9:41 am, the Sensex was trading at 81,059.44, marking a gain of 103.11 points or 0.13 per cent, while the Nifty was trading at 24,488.65, rising by 21.20 points or 0.09 per cent. The market trend remained optimistic, with 1,291 stocks trading in green on the National Stock Exchange (NSE), while 993 stocks were in red.

Market experts have attributed this positive trend to the booming US markets. The comment by Fed chief Powell that the economy is in good shape has been a source of inspiration for US bulls. However, concerns have been raised about the rising valuations in the US, a concern that also extends to India. Experts have advised caution, stating that while valuations can rise in a bull market, it is important to tread carefully.

The market experts also commented on the Foreign Institutional Investors (FII) sellings, stating that FIIs turning buyers is positive for markets, particularly for large caps. The strength in banking stocks has the potential to take the Bank Nifty towards all-time highs, which could also help the Nifty to move higher.

Nifty Bank and Other Indices Performance

In the banking sector, the Nifty Bank was down 53.40 points or 0.10 per cent at 53,213.50. The Nifty Midcap 100 index was trading at 58,206.55 after gaining 94.15 points or 0.16 per cent, while the Nifty Smallcap 100 index was at 19,241.45 after gaining 67.90 points or 0.35 per cent.

Akshay Chinchalkar of Axis Securities noted that The Nifty rose for the fourth straight day yesterday, a streak that was last witnessed a day before the September 27 record peak. In the Sensex pack, Infosys, TCS, Bharti Airtel, Ultra Tech Cement, Titan, Tech Mahindra, Adani Ports, Bajaj Finance and Axis Bank were the top gainers, while NTPC, JSW Steel, Asian Paints, HDFC Bank and Maruti were the top losers.

In the Asian markets, the markets of China and Japan were trading in green, while Seoul, Jakarta, Bangkok and Hong Kong were trading in red. The US stock markets closed in green on the previous trading day. Foreign institutional investors (FIIs) bought equities worth Rs 1,797 crore on December 4, while domestic institutional investors sold equities worth Rs 900 crore on the same day.

Investment Strategies and Market Resilience

Market experts have advised investors to adopt a cautious investment strategy with asset allocation as the underlying principle. They have suggested that since the market has been resilient amid challenges, it makes sense to remain invested. Large Caps in financials, IT, capital goods and telecom are ideal for accumulation from a medium to long-term perspective.

Shares of NTPC Green Energy, a wholly owned subsidiary of NTPC Limited that recently debuted on Dalal Street, have been on a steady upward trajectory. In today's trade, December 4, the stock jumped another 9.3 per cent, reaching a fresh all-time high of ₹155.35 per share. This came after the stock hit the 10 per cent upper circuit limit in the previous trading session, marking its first circuit limit since listing. Despite a muted debut on the stock exchanges on November 27, the stock gained momentum in the following trading sessions and is now trading 44 per cent higher than its IPO price of ₹108, at its all-time high price.

The Indian Renewable Energy Development Agency (IREDA) has said its board will consider a proposal to raise ₹4,500 crore at its next meeting on August 29. In a regulatory filing on August 21, the state-owned renewable energy financing company said it plans to raise money in multiple segments through a Further Public Offer (FPO), Qualified Institutional Placement (QIP), Right Issue, Preferential Issue, or any other permitted mode or combination as per government approval.