Sensex, Nifty extend gains; FIIs stay net buyers
The Indian stock markets closed higher last week, with the Sensex up 1,289 points and the Nifty adding 307 points. This week, the momentum continued, with the Sensex rising 259 points to 80,501 on Friday, while the Nifty 50 edged up 12 points to 24,346. Despite some minor fluctuations, the mid and small-cap indices saw marginal declines.
The Indian stock markets have been on a steady upward trajectory over the past few weeks, and it appears that this trend is likely to continue in the coming week. According to a recent report by The Core, “markets are poised for a steady run during the week” (https://www.thecore.in/podcasts/markets-poised-for-steady-run-during-week-834733).
Foreign investors have been a major driving force behind the Indian stock market’s surge. In April, FIIs (Foreign Institutional Investors) added a whopping $300 million to their Indian equity holdings, and they continued to purchase shares in May. This influx of capital has helped to boost the market’s confidence and fuel the rally.
One of the key reasons behind FIIs’ optimism is the Indian economy’s robust growth prospects. The country’s GDP (Gross Domestic Product) is expected to grow at a rate of 7.5% in the current fiscal year, driven by factors such as a strong manufacturing sector and a favorable business environment.
Another factor contributing to FIIs’ confidence is the Indian government’s efforts to improve the country’s Ease of Doing Business (EoDB) rankings. The government has taken several initiatives to simplify regulatory procedures, reduce bureaucratic red tape, and increase transparency in business dealings. These efforts are expected to attract more foreign investment and boost economic growth.
The Indian stock market’s rally has also been driven by the performance of key sectors such as IT, banking, and pharma. These sectors have been performing well due to factors such as a strong global demand for IT services, a pick-up in economic activity, and a favorable regulatory environment.
The IT sector, in particular, has been a major driver of the Sensex’s growth. Companies such as TCS, Infosys, and Wipro have reported strong earnings growth, driven by a surge in demand for their services from clients in the US and other developed markets.
The banking sector has also been a major contributor to the Sensex’s growth. Banks such as HDFC Bank, ICICI Bank, and Axis Bank have reported strong earnings growth, driven by a pick-up in economic activity and a reduction in bad loans.
The pharma sector has also been performing well, driven by a surge in demand for generic drugs and a favorable regulatory environment. Companies such as Sun Pharma, Dr. Reddy’s, and Lupin have reported strong earnings growth, driven by a strong demand for their products.
In conclusion, the Indian stock market’s rally is likely to continue in the coming week, driven by factors such as a robust economy, foreign investor optimism, and the performance of key sectors such as IT, banking, and pharma. With the Sensex and Nifty continuing to rise, investors are likely to remain optimistic about the market’s prospects.
Source: https://www.thecore.in/podcasts/markets-poised-for-steady-run-during-week-834733
