Indian shares continue to scale new peaks after US rate cut

BENGALURU: Indian shares hit record highs for the third straight session on Monday as the outsized US rate cut last week boosted investors’ risk appetite.

The Nifty 50 index rose 0.57% to 25,939.05, while the S&P BSE Sensex gained 0.45% to 84,928.61, notching record closing highs. They also hit all-time highs in the session.

The broader, more domestically focussed small- and mid-caps rose 1.1% and 0.8%, respectively.

The rally has pushed the benchmark indexes into “overbought” territory, with the relative strength index above 70, according to LSEG data.

But that has not deterred investors.

“India remains the best long-term opportunity for equity investors globally,” Christopher Wood, global head of equity strategy at Jefferies, said in a note.

Even if there is a “meaningful” correction at these elevated valuations, it is only likely to result in increased foreign buying, Wood said