On Tuesday, Indian stock indices opened slightly higher, continuing the positive momentum from the previous session’s close. This uptrend was primarily driven by fresh buying following the recent dip. At 9:19 am, shortly after the opening bell, the Sensex stood at 72,979.48 points, marking a gain of 203.34 points or 0.28 percent, while the Nifty reached 22,177.15 points, up by 73.10 points or 0.33 percent. At the time of reporting, all sectoral indices, except for the Nifty pharma and Nifty healthcare index, were trading in positive territory.
Over the past week, indices experienced consistent declines. Analysts attributed this to a strong US dollar, uncertainty surrounding the Lok Sabha election outcomes due to a decreasing voter turnout trend in the completed phases, and profit booking following a recent rally. Additionally, continued selling by foreign portfolio investors (FPIs) and lower-than-expected earnings from some major corporations also dampened investor sentiment.
Foreign portfolio investors (FPIs) have recently turned net sellers in Indian stocks. After remaining net buyers for three consecutive months until mid-April, FPIs have cumulatively sold stocks worth Rs 8,671 crore during April, according to National Securities Depository Limited (NSDL). So far in May, they have sold stocks worth Rs 18,375 crore.
“Given the current conditions, the best strategy for investors is to wait and watch for a trend change, which could occur at any time. Clarity on election trends is expected before June 4th, the counting day, and the market response could be significant. Buying on dips would be a prudent approach now,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.With annual retail inflation easing slightly in April, the focus now shifts to wholesale inflation figures, which are due later today.