India stocks rally may have a tough fight amid stretched signals
Indian equities rally may cool as technicals suggest overbought conditions for NSE Nifty 50 index. Investors optimistic due to Modi government's commitment to pro-growth policies. Global funds boost market with $3.1 billion in net purchases. June sees market recovery from selloff with increased bullish sentiment. Market value hits $5 trillion amid record-setting rally.
The record-setting in looks set to cool as technicals show the run is now looking stretched.The relative strength index — a measure of short-term momentum — for the moved deeper into overbought zone Tuesday after rising above 70 a day prior for the first time since January. This comes as the gauge capped its fifth straight quarter of advance, the longest stretch since 2021, boosting the nation’s to $5 trillion.
Indian have climbed by more than 10% since a selloff early last month, as investors cheered a commitment by Prime Minister Narendra Modi’s coalition government for continuity of pro-growth policies. Global funds returned to the nation’s , with net purchases of $3.1 billion in June, providing a further boost to the bullish fervor.
BloombergSource: Stocks-Markets-Economic Times
