Dalal street surges to new highs after a days break

Indian equity markets reached a historic closing high on Monday, driven by a significant surge in information technology (IT) and FMCG shares. This rally was fueled by renewed optimism over a potential interest rate cut by the U.S. Federal Reserve in September, which could have a favorable impact on global liquidity and investment flows.higher on July 1 led by IT, auto and FMCG stocks. At close, the Sensex was up 443.46 points or 0.56 percent at 79,476.19, and the Nifty was up 131.35 points or 0.55 percent at 24,141.95.
A significant highlight of the week was the notable shift in foreign institutional investors (FII) positions in the derivative market. From holding record-high short positions ahead of the elections, FIIs have now transitioned to holding record-high long positions, the highest seen since 2017. This reversal reflects renewed confidence in the Indian market's potential.
After two consecutive months of huge selling, foreign institutional investors turned net buyers in June, having bought shares worth $3.2 billion – the second- highest monthly buying after $4.2 billion in March, according to information. This assumes significance as their recent purchases have come on the back of two successive months of selling -- $3.1 billion in May and $1.04 billion in April.
Further, both the Sensex and Nifty surged nearly seven percent in June and over 7.3 percent for the June quarter. The BSE MidCap and BSE SmallCap indices have performed even better, gaining 7.7 percent and 10.8 percent in June, and registering quarterly increases of 17 percent and 21 percent, respectively, according to information.
Tech Mahindra, Wipro, Bajaj Finance, UltraTech Cement and Grasim Industries were the top gainers on the Nifty, while losers included NTPC, Eicher Motors, Dr Reddy's Labs, SBI and Apollo Hospitals.On the sectoral front, except power, PSU Bank and realty, all other indices ended in the green with IT index rose nearly 2 percent.The broader indices hit a fresh record high with the BSE midcap and smallcap index adding more than 1 percent each.
Rupee Close: 
On 1 July'24, the Indian rupee depreciated 11 paise to settle at 83.45 against the US dollar on Monday, tracking rising crude oil prices in international markets.However, a firm trend in domestic equity markets, positive manufacturing PMI data and a weak US dollar against major currencies overseas capped the sharp fall, forex traders said.
Trading Guide: 
Experts are of the view that FIIs are showing strong positive sentiment by increasing their bullish positions on Indian equity derivatives and even the net index futures contracts held by global funds with bullish interest have reached their highest levels in seven years.
Market experts have recommended buying these five buy-or-sell stocks: Garware Hi-Tech, Grasim Industries, IGL, Canara Bank, and RCF.

(Writer is a Finance Research Analyst, based in Gandhinagar, Gujarat)