Even as foreign institutional investors (FIIs) maintain buy on the Indian equities, the stock market is expected to remain range bound in the short-term, say industry trackers.
FIIs have pumped in more than Rs. 100,000 core since January this year. However, the stock market would remain range-bound, say analysts.
“Indian Market seems to be over bought as it is resisting to move up even on remarkable turnaround by global markets,” said Vijay Kedia, director, Kedia Securities.
The 30-stock benchmark BSE Sensex on Thursday marginally up by 56 points, or 0.3%, to close at 18,517.
The broader Nifty of the National Stock Exchange gained 13 points, or 0.2%, to close at 5,628.
Although some analysts say that the Indian stocks are bound to perform better in the coming months as the government looks to take steps towards reforms.
“The reform process has commenced again which is a good launching pad for the market. LIC is also allowed to raise stake to 30% in companies from current 10%. This would pave the disinvestments clearance which in turn would address key concern of fiscal deficit,” said Kishor P Ostwal, chairman, CMI Research.
Some analysts predict that the Nifty could touch 6,000 levels in the coming months.
Meanwhile Blue Dart, the Mumbai-based logistics company that on Wednesday had announced to sell around 6% stake — by its promoters — saw its shares jump by as much as 20%, or Rs. 342.75, to touch Rs. 2,056.6.