Surat Investment：The Indian stock market reached a record high

Introduction: In addition to the renewal of the Indian stock market, the investor preference sector has recently changed.

Author | First Financial Poin Tongtong

As the Federal Reserve ’s interest rate cutting boots landed, today, the Indian Sensex index rose 0.39%to 84877.94 points, renewing a record high, and the accumulation of over 17%during the year.Although the valuation of the new highs has been high, the Indian stock market has continued to attract overseas investors and is expected to record up for six consecutive quarters.

In addition to the popularity of the secondary market, the first -level market is also "rising to the sky."However, the unchanged changes.Because Indian Prime Minister Modi had previously won in the election, although the Indian stock market continued to rise in momentum, investors also adjusted the sector preferences, withdrew from the Modi concept stocks, and invested in consumption and software stocks.Recently, the Federal Reserve reduced interest rate cuts also brought a wave of markets to the interest rate sensitivity sector.

The Indian stock market is expected to record the sixth quarter riseSurat Investment

After entering the ninth year this year, India's stock market price -earnings ratio has reached twice the MSCI emerging market index.The P / E ratio of the Nifty50 Index has reached 21 times, which is much higher than the 10 -year average of the index.However, in Modi's successful establishment of a joint government, starting the third term, enhancing investors' confidence in policy stability and continuity, the expectations and acquisitions of the Federal Reserve interest rate cuts, and the global market that the global market has been turbulent in AugustIn the context, overseas investors who have temporarily left the Indian stock market due to high valuations are returning again.

Media data shows that foreign investment in Indian stocks of $ 8.5 billion in this quarter may set the highest buying scale since mid -2023.Promoted by such a large -scale inflow of funds, the Indian stock index is also expected to record up in the sixth consecutive quarter. The MSCI India Index rose 7%this quarter, while the more widely widespread emerging market stock index rose by about 2%in the same period.In September alone, overseas funds are also expected to go into the Indian stock market for the fourth consecutive month.

In addition, a public trading fund (ETF) that tracked the Indian stock market in the United States (ETFs) also rose with the Hindu stock market's repeated high.For example, the Wisdomtree India Earnings Fund -one of the oldest and largest ETFs in this category -a new high in the near future, this summer has also recorded a single month of 8%.

HSBC Global Private Bank and Wealth Management James Cheo, the chief investment officer of India and India, said: "Although the valuation is indeed high, the Indian stock market is still attractive compared to other markets with weak growth prospects.Economic growth can also continue to be supported by strong corporate performance and favorable economic conditions and support policies.

It is also worth mentioning that not only the secondary market, the Indian primary market has also been sought after by global funds, becoming the world's busiest market this quarter.According to media reports, investors' vigorous demand to promote India's first public offering (IPO) market is expected to usher in the listing of 235 companies this year, with a financing of about 8.6 billion U.S. dollars, more than 2023 total financing.Among them, there are also billions of dollars in large financing projects.

For example, the Indian housing loan financing institution Bajaj Housing Finance was listed in the Indian local market in mid -September, raising 65.6 million rupees (about 780 million US dollars).Calculated at the issue price, the company's valuation is about $ 7 billion.Before listing, Bajaj Housing Finance was subscribed for nearly 64 times within 3 days.Last month, Ola Electric Mobility LTD.The listing raised more than 730 million US dollars, and baby products retailer Brainbees Solutions LTD.The listing raised about 500 million US dollars.The NTPC Green Energy of the Renewable Energy Department of the Indian National Thermal Power Corporation (NTPC) has recently submitted an IPO application to the Indian Securities and Exchange Commission, and it is planned to raise $ 1.19 billion in $ 1.19 billion

Plate wheel turning open

However, after the Indian stock market has reached a record high, the investor preference sector has recently changed.

The Modi stock index prepared by Lyon Securities showed that within 100 days after opening the third term in early June, the "Modi Concept Stock" index rose only 2%.During the same period, the increase in consumer and software stocks reached 20%and 34%, respectively.Media compilation data also shows that overseas funds reversed the previous buying trend in August and sold the industry sector supported by Modi policy, including public utilities, cement, metals and finance sectors.Not only overseas investors, a report from Motilal Oswal Financial Services Company shows that in the three months since the announcement of the results of the election on June 4, India's domestic common funds have also reduced their investment in enterprises of production capital goods.These companies have always been one of the main driving forces of the Indian stock market.

For the reason, the market participants said that mainly because in the previous Indian elections, the Indian People's Party (BJP) led by Modi failed to obtain more than half of the seats at the People's Court (lower courtyard) as expected.Obtaining the power of the cabinet, and this dependence may exacerbate populism, which makes investors worry.

Sonam Srivastava, the founder and fund manager of the investment institution Wright Research and Capital, said that the investment theme of the Indian stock market is mainly promoted by the Indian elections and the recent global market fluctuations. The theme of investors' preferences has shifted from infrastructure to agriculture and consumption.Field.

Analyst Mahesh Nandurkar, an analyst at Jefferies Financial Group, also wrote in a recent report that Modi may not be able to achieve capital expenditure goals during the new term, which will become an investment -intensive infrastructure industry stockThe significant resistance to continue to rise is expected that the backward performance of Modi concept stocks may continue until the end of this year.Lucknow Wealth Management

In addition to the impact of the election, the Federal Reserve's first drop last week has also triggered the latest round of rotation.Last week, interest rate -sensitive sectors such as automobiles and finance were boosted by interest rate cuts.Traditional industry sectors such as fast consumer goods (FMCG) are also performing well. The strength of this sector -like stock is mainly promoted by expectations of good performance. This is due to the strong and low investment costs of consumers.However, growth stocks, such as technology stocks, have not performed well.The Nifty IT index fell nearly 3%last Wednesday, the largest single -day decline since August 5, 2024.Indian technology stocks such as Infosys, TCS and Tech Mahindra also led the index.

Jinnai Wealth Management