Mumbai, July 2 (IANS): The performance of the Indian equity indices has been stellar so far in 2024 due to the ongoing rally in the stock market. Sensex and Nifty both posted nearly 10 per cent gains in H12024 prompting the market experts to anticipate the ongoing rally to continue.

Frontline indices like Sensex and Nifty have been making new all-time highs almost every day for the last few days. On Tuesday, Sensex and Nifty made new all-time highs of 79,855 and 24,236 respectively.

Experts said that large Foreign portfolio investment (FPI) purchases and the probability of interest rate cuts by the Fed are driving the ongoing rally in the market.

Vinod Nair, Head of Research at Geojit Financial Services said, "We anticipate this trend will persist in the near term due to expectations of a rebound in discretionary spending. Investors are now focusing on upcoming US job data and the Fed Chair's speech for further indication on interest rates."

A total of Rs 26,565 crore has been invested by FPIs in the Indian stock market in June. They were net sellers in April and May.

Vipul Bhowar, Director of Listed Investments at Waterfield Advisors said, "The government's continuity following the election results guarantees ongoing reforms. This has led to an improved GDP growth forecast, attracting Foreign Portfolio Investment (FPI) buying."

"FPIs are favouring the financial, auto, capital goods, real estate, and select consumer sectors. It is expected that FPIs will make selective investments in specific sectors and stocks instead of broad-based buying across the market," he added.