Taking cues from the generally successful G20 Summit in New Delhi, Indian stock indices opened Monday’s trading on a strong note. Despite a divided house due to the ongoing conflict in Ukraine and Western sanctions against Russia, the agreement on the ambitious rail-port economic corridor connecting India with the Middle East and Europe as well as the launch of the Global Biofuel Alliance on the fringes of the summit seemed to entice investors to place bets in the market.
Sensex and Nifty were 0.3-0.4 per cent higher from their Friday close of 66,861.16 points and 19,910.10 points, with all sectoral indices in the green. Last week, Indian stocks ended at a high to log their best week in over two months.
Companies involved in railways, ports and infrastructure are the top gainers today.
Additionally, up until August, foreign portfolio investors (FPIs) were still net buyers in the Indian stock markets, marking the sixth consecutive month of positive market activity. According to data, they acquired equity assets worth a total of Rs. 1.31 lakh crore in 2023.
“The G20 Delhi Declaration and India’s diplomatic triumph can trigger a continuation of the positive market mood and momentum,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“More importantly, the inclusion of the African Union in G20 and the proposed India-Middle East-Europe Corridor have positive economic and market connotations,” Vijayakumar added.
Citing an example, he said the inclusion of the African Union in G20 is positive news for Bharti Airtel which has a significant presence in Africa.