Indian mkts set to hit record new highs: CFC Seymour

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Asian markets were trading higher. Japan's Nikkei gained 0.39%, or 65.66 points at 16,851.35, while Taiwan's Taiwan Weighted rose 0.53%, or 49.98 points at 9,526.50. Singapore's Straits Times surged 1.39%, or 51.45 points at 3,757.68, and South Korea's Seoul Composite advanced 1.05% or 20.51 points at 1,966.99.

Dariusz Kowalczyk , Chief Investment Strategist of CFC Seymour , said Asian markets were focusing on very strong local fundamentals and benefiting from enormous inflow of foreign portfolio investment, which would allow many of them to hit new record highs including India.

He said the reason he expected the upward trend to continue for the rest of the year was because policy makers from around the world were willing to do anything to keep global economy growing.

On India specifically, Kowalczyk said the fundamentals were still in place that was helping this rally, which meant huge FII inflows that were thereby increasing valuations. He noted India was also benefiting from the fact that the long-term growth output was still strong and that was one of the reasons why USD 350 million in net foreign portfolio inflows has been seen over the past week. He felt that the index was really overbought and though Indian markets might not keep the pace of last week, they should still go higher.