By Malvika Gurung
Investing.com -- The domestic market made a slightly positive-a nearly muted opening on Friday, tracking a fall across Asian markets, while Wall Street remained closed on Thursday on account of Thanksgiving.
At the time of writing, they were trading marginally lower, as FMCG and consumer durable stocks exerted pressure, while heavyweights like Coal India (NS: COAL ), L&T (NS: LART ) and HDFC Life Insurance (NS: HDFL ) supported the market.
In a note provided to Investing.com, Dr VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, states that several favourable factors have grouped to push the markets to record levels. They include the FOMC minutes indicating smaller rate increases, the sharp correction in crude, FIIs turning buyers, reports of impressive credit growth and capex revival.
Not just the positive reasons, the bad news of record Covid spread in China is also turning out to be good news for India, as it would accelerate the China Plus One policy, stated Vijayakumar.
He believes that it is only a matter of time before Nifty breaks its previous record high of 18,604.
According to Vijayakumar, the significant feature of the rally is the fact that it is driven by heavyweights like HDFC Bank (NS: HDBK ), ICICI Bank (NS: ICBK ), HDFC (NS: HDFC ), Infosys (NS: INFY ), TCS (NS: TCS ), HCL Tech (NS: HCLT ) and Reliance Industries (NS: RELI ), which have strong fundamentals, which makes the rally healthy.
“But the market is unlikely to surge from the record highs since the valuation headwind will act as a restraint,” added the market expert.
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