The uncertainty of the election in June this year caused a short lag, and overseas funds poured into the Indian stock market again. This market with a scale of $ 5 trillion was returning strongly.

With the promotion of policy continuity and strong growth prospects, the recovery of investors' emotions and confidence, especially driven by the Federal Reserve's interest rate cut,

This week, the Indian stock market continued to reach a new high.On Friday, the Indian Sensex Index and the Nifty Index rose 1.7%and 1.5%, respectively, renewing a record high.

This year, the Indian stock indexes are also among the best in the global market.

Since the beginning of the year, the Sensex Index has risen over 16%, and the Nifty Index has risen more than 18%, second only to the NAS Index and the S & P 500 index, occupying the third and fourth positions in major exchanges around the world.Nagpur Investment

Analysts predict that the rise of the Indian stock market will continue until 2025.

According to Bloomberg data, the net foreign purchasing volume of this quarter was US $ 8.5 billion, which is expected to become the highest level since mid -2023.

After Indian Prime Minister Modi obtained the third term, people's bets on policy continuity were restored, especially when the Fed started to cut interest rate cuts, the prospects of capital inflows seemed hopeful.

The surge in capital inflow also shows that investors are becoming more and more satisfied with Indian stock valuation.

Compared to the emerging market peers and its own history, India's stock valuation is high, because the Indian NSE Nifty 50 Index has risen for the ninth consecutive year.Bangalore Wealth Management

However, James Cheo, the chief investment officer of HSBC Global Private Bank and Fortune Management in Southeast Asia and India, said:

"Although the valuation is high, the Indian stock market is still attractive compared to other markets with weak growth prospects. Strong corporate performance and favorable economic conditions support India's growth momentum."

The International Monetary Fund predicts that by 2028, India will become the third largest economy in the world.Last quarter, India's GDP increased by 6.7%year -on -year.

From April to May of this year, foreign investors continued to sell. After the election, foreign investment flowed back in June and July, and in August, it slowed down.

However, it is expected to reach a six -month high in September, and it is expected to become the fourth consecutive month of overseas funds into India.

The Indian index is expected to rise for the sixth consecutive quarter.Nagpur Stock

The 12 -month expected price -earnings ratio of Sensex and Nifty has been high to 23.6 and 24.4, respectively, the highest in emerging markets.

Analysts said that the expectations of soft landing in the United States may also promote the development of information technology and pharmaceutical industries, and most of these industries have revenue from the United States.

Real estate, automobiles, public sector enterprises, pharmaceuticals and energy are the best industry indexes so far this year.

Nilesh Shah, managing director of Kotak Mahindra AMC, said that smart funds seem to be turning to large -cap stocks because it is expected that these stocks will usher in more foreign capital inflows, which highlights that after the Federal Reserve cut interest rates, their performance will be better than small and medium -sized stocks.

Looking forward to the future, the US economy's soft landing may further benefit the Indian IT and pharmaceutical industries, because the income of these industries is closely related to the US market.

Singapore Smartsun Capital PTE Fund Manager Sumeet Rohra also pointed out that the return of overseas investors shows that a market that can bring back can not be ignored for a long time, and India's weight in the MSCI index has also risen significantly.