The stock markets are expected to open on a positive note on Friday. Analysts said the long roll-overs to the July series in the derivatives market indicates the bullish momentum. They expect the momentum to continue as long as foreign portfolio investors pour money into the Indian markets.

Mukesh Kochar, National Head - Wealth at AUM Capital Market, said: India has emerged one of the sweet spots as far as FPI investments is concerned. They are consistent buyers and have supported the market. At the same time, regular incremental flows from SIPs, provident funds and pension funds is huge. SIP is growing consistently and is currently above Rs 14,000 crore per month. Domestic institutions and mutual funds are becoming bigger and bigger.

“Post-Covid we have seen a big change in most business houses. Most of them have created separate family offices and keep their business separate from the family offices. This money is huge and most of it is equity money. PMS /AIFs are growing heavily due to contributions from these family offices,” he added.

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The SGX Nifty at 19,190 indicates another 100-point gap-up opening for the Nifty as Nifty July futures closed at 19,072.45 at the NSE on Wednesday.

However, equities across the Asia-Pacific region are down in early deals on Friday. 

Apurva Sheth, Head of Market Perspectives & Research, SAMCO Securities, said:  Investors should employ a buy-on-dips approach and look out for fundamentally strong stocks. The Q1-FY24 results that kick start from next month are likely to provide more triggers to further fuel this rally. The sectors to watch out for now are IT and banks. The IT sector is yet to participate in the rally. Banks, on the other hand, have highest weightage in the index and will probably do the heavy lifting from here”.

Mukesh Kochar believes fund flows into the domestic market will continue due to its advantage compared to its peer emerging market economies, including China, Korea and Taiwan. These economies have their own challenges such as pollution and geo-political risk. “There are still huge pockets of opportunity in the market. But, having said that, one should know that the market is volatile in the short-term and small corrections are expected. Investors should focus on asset allocation rather than timing the market and look for the bigger picture in the long-term,” he added.

Profit-taking may emerge in the later part of today, analysts said, given the negative trend in the global markets.

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