Indian stocks markets closed at the highest level ever for major indices as global sentiment looks strong after US Federal Reserve paused interest rate hikes in the recent policy meeting. Indian markets have been trading firm as the economic outlook for India has improved and economy is showing signs of strength. Indian government is also pushing rating agencies to upgrade India’s rating. Investing community is upbeat about the medium to long term prospectus of Indian companies as consumption has been steadily growing up. Compared to rest of the world, India is doing much better on inflation front. We can expect markets to remain strong in near term.

On Friday, many stocks touched 52-week high with some touching lifetime high. FMCG majors like ITC, Godrej Consumer Products, Tata Consumer and Nestle were among gainers during the trading session. ITC touched 52-week high (Rs 455.60) during the session. Nestle India and Britannia Industries also touched 52-week high. Due to better consumption across many of its segments, Britannia Industries has smartly moved from yearly low of 3,270 to 5,058 during Friday’s trade.

Among other major stocks that touched 52-week high during the trading session were Apollo Hospitals, IDFC, PI Industries, Roto Pumps, Safari Industries, Sundaram Fasteners, Titagarh Wagons, UltraTech Cement, Titan Company, Zydus LifeSciences and Nitin Spinners.

The current rally in Indian stocks can be seen as a broad-based rally. While blue-chip stocks have been leading the way, mid-cap and small-cap aren’t behind. Many small-cap stocks have touched all-time high during the current week. The markets have fairly rewarded the companies that have shown positive quarterly results.

Technology stocks are facing pressure as there is an imminent threat of recession in the United States. With lower deal wins as many companies in the US market are trying to lower their costs, Indian IT sector could feel pain in the coming quarters. For technology companies, the quarterly results were fairly positive but the outlook seems bleak.

Among other gainers in Friday’s session were Mankind Pharma, M&M Finance, Kalyan Jewellers, JK Cement, Ingersoll Rand, HAL, GSPL, Godrej Industries and Mrs. Bectors Food.

As US and European markets are also showing strength, we can expect Indian markets to remain positive for next week as well. A small correction can’t be ruled out as stocks have witnessed a sharp upside move in the recent weeks. Even if there is a correction, it could be followed by a rally as medium to long term outlook for Indian equities is positive.