Mainly driven by optimistic indications from the US markets that rose overnight, stock indices started Wednesday’s session with modest gains, continuing their bullish trend for the fourth straight session.
Nifty was up 37.35 points, or 0.17 percent, at 22,255.20 points at 9:27 a.m., while the Sensex was up 89.20 points, or 0.12 percent, at 73,193.81 points. All other sectors indices was up at opening, apart from Nifty Private Bank and Nifty Financial Services.
A strong US currency, concerns about the Lok Sabha elections because of a trend of decreased voter attendance in the phases that have been held so far, and profit-taking following the recent spike were all factors analysts cited for the indices’ persistent losses throughout the previous week.
Before June 4th, the counting day, clarity on election trends is anticipated, and there may be a big market response. Using a ‘buy on dips’ approach would be prudent at this point. As a result of FII selling, FII-heavy stocks now provide good bottom fishing possibilities. Strong fundamentals are demonstrated by major banks, capital goods companies, well-known automakers, and top IT companies like TCS, said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
For the ninth straight day on Tuesday, foreign investors kept selling Indian stocks. On the other hand, over the last two weeks, domestic institutional investors have continued to be net purchases, offsetting the withdrawals by overseas investors.
Foreign portfolio investors (FPIs) have recently turned net sellers in Indian equities. Until mid-April, FPIs had been net buyers for three consecutive months, but data from the National Securities Depository Limited (NSDL) indicates that they have collectively sold stocks worth Rs 8,671 crore in April. In May, FPIs have divested stocks worth Rs 22,767 crore.
Meanwhile, stocks in other Asian markets advanced on Wednesday, following a significant rally in the US, as investors await crucial inflation data later in the day, which will offer insights into the future monetary policy actions of the Federal Reserve.