On Tuesday morning, benchmark indices in India continued their upward trend with the 30-share BSE Sensex rising 173.65 points to 61,937.90 in early trade, while the NSE Nifty climbed 54.35 points to 18,318.75. The continuous buying from foreign institutional investors (FIIs) and indications of easing recession fears in the US helped push the indices up. On Monday, FIIs bought equities worth INR 2,123.76 crore. Several major firms gained on the Sensex, including Bajaj Finserv, Tata Motors, and UltraTech Cement. Meanwhile, major laggards included the State Bank of India, HCL Technologies, and Reliance Industries.
In other Asian markets, Tokyo and Shanghai were trading in the green while Seoul and Hong Kong quoted lower. US markets ended on a mixed note on Monday. Experts have pointed to three factors driving the current rally in the Indian market. Firstly, the better-than-expected strength of the US economy and the increasing confidence that the US will avoid a bad recession. Secondly, strong buying by FIIs who have been continuous buyers during the last eight trading days. And thirdly, fundamental support to the rally from macro indicators such as robust GST collections, improving PMI, high fuel consumption, and good credit growth.
Geojit Financial Services Chief Investment Strategist V K Vijayakumar stated, “There are three prominent factors which are driving the ongoing rally in the market: One, better-than-expected strength of the US economy and the increasing confidence that the US will succeed in avoiding a bad recession. Two, strong buying by FIIs who have been continuous buyers during the last eight trading days.
Three, fundamental support to the rally from macro indicators such as robust GST collections, improving PMI, high fuel consumption, and good credit growth.” Meanwhile, the global oil benchmark Brent crude dipped 0.42% to USD 76.68 per barrel. On Monday, the BSE benchmark rallied 709.96 points or 1.16% to settle at 61,764.25, while the Nifty climbed 195.40 points or 1.08% to end at 18,264.40.
