Foreign and desi bulls.

"India's benchmark Sensex stock index hit a record on Wednesday (21 June), while the Nifty50 logged a new closing high amid sustained foreign inflows into Indian equities backed by the country's strong growth prospects." Reuters. "The S&P BSE Sensex hit an all-time high at 63,588.31," as "Foreign investors poured in Rs 738.12 billion ($8.99 billion) so far in this financial year. They were net sellers in the previous two financial years, with a record outflow of Rs 1,400.10 billion in FY22." Selling by foreign investors made little difference as domestic investors have been pouring money into stocks. "New demat account openings rose most in nine months in May, fueled by a broader market rally and record derivative volumes." Mint. A demat, or dematerialised account, holds shares in a non-physical format like a bank account. HDFC Bank. Openings of new demat accounts indicate ordinary individuals are investing in shares. "This was highest in August, when new account additions shot up 73% or 2.55 million, according to depository data." This would have been in the last financial year when foreign investors were selling. In addition to buying shares, "India's options frenzy rose to a crescendo in May despite regulatory warnings, with Nifty and Bank Nifty options volumes hitting a record 5.64 billion contracts, as the Bank Nifty hit a new high while the Nifty approached its record during the month." Mint. "The jump in index options volumes, in turn, drove total derivatives volumes to a record 5.75 billion contracts in May." While people are spending on stocks, "The nation is heading for a slowdown, analysts who cover it say, as rising inequality squeezes consumer spending among the poor - and hundreds of millions in the middle class." ET. This was supported by the RBI yesterday. "Citing national accounts data and corporate results, the Reserve Bank of India in its latest monthly bulletin has noted that higher inflation in India is slowing down personal consumption expenditure, which in turn is leading to a moderation of corporate sales and holding back private  investment in capacity creation." ET. In which case why is corporate borrowing rising? "In the years 2020-21 and 2021-22, Indian firms had pared their gross debt by 4% and 2%, respectively. However, gross debt rose by nearly 19% in 2022-23, the sharpest increase in over a decade." Mint. "Large listed firms borrowed more aggressively in 2022-23. Their aggregate debt to equity ratio rose sharply to 0.57 from 0.48 in 2021-22." Some banks are hiding bad loans. "RBI Governor Shaktikanta Das said the central bank has come across instances of some lenders trying to conceal their stressed assets." Zee. Meanwhile, "Adani Group stocks were under the spotlight and lost up to 10% in Friday's (yesterday's) trade amid a Bloomberg report suggesting US authorities are looking into what Adani Group made to its American investors following Hindenburg Research's scathing report that accused the company of using offshore companies to secretly manipulate its share prices." ET. Buy Indian shares. All in agreement.