India related Nifty-50 and Japan related Nikkei-225 are trading at 52 week high
India related Nifty-50 and Japan related Nikkei-225 is trading at 52 week high.
On Jan-12-2024, Nikkei 225 index closed at 35,577 and Nifty 50 index closed at 21,894.
Getting to India, currently Nifty-50 is at high mainly because of Software and IT companies in India posted better results than street expected. Infosys, TCS, Wipro, HCL Technologies all posted better results than street expected. Mainly Infosys had given guidance they are estimating 2025 will be better than 2024. Rather than results, the future guidance by Infosys helped the stock to gain 7%.
Mainly India market will be interested in Reliance Industries results. It is conglomerate sector company like it has its business in Oil and Gas, Retail, Telecom, Technology, eCommerce. Reliance Industries results will be posted on Jan 19th, 2024.
India economy is growing under the leadership of India PM Modi as he is focusing on India development, infrastructure, ease of doing business rules implementation and additional to this India FM Nirmala Sitaraman reducing taxes on manufacturing sector, domestic consumption factors.
Even the Japan markets are at 52 week high mainly because profits are better than expected.
But be cautious on investing stocks which are trading at high PE multiples. Generally investment companies and mutual funds, will shuffle money from high PE stocks to low PE stocks and which has more probability to grow in future. They will assess based upon relative individual future estimated stock price growth while taking decision.
Mainly global stock markets will be waiting for first FED first interest rate cut. Mostly it may come in March-2024 month or May-2024 month. Companies spending generally will increase post first FED interest rate cut.
Mainly whatever the companies are kept earlier in China, now they want to implement China plus strategy as risk mitigation activity that is to diverse part of business in China to countries like India, Japan, Vietnam, South Korea.