Foreign institutional investors (FIIs) started September on a positive note as domestic markets settled higher after the gross domestic product (GDP) data showed that the Indian economy grew at its quickest pace in a year during the April-June quarter, which could boost foreign fund inflows.
Foreign inflows had moderated to a four-month low of ₹122.52 billion ($1.48 billion) in August. FIIs emerged as net sellers in August on the back of a stronger dollar and high US bond yields. The domestic institutional investors (DIIs) emerged as net buyers in August and extended their buying spree in the first session of September as well.
As per the NSE data, FIIs cumulatively bought ₹15,219.61 crore of Indian equities, while they sold ₹14,731.67 crore — resulting in an inflow of ₹487.94 crore. Meanwhile, DIIs infused ₹10,888.79 crore and offloaded ₹8,593.86 crore, registering an outflow of ₹2,294.93 crore.
Meanwhile, domestic equity benchmarks Sensex and Nifty settled higher on the first session of September, boosted by all-around buying in light of broadly positive global cues as well as strong domestic macro data.
Government data released on Thursday showed that the Indian economy grew 7.8 per cent in the April-June quarter of fiscal 2023-2024, mainly on the back of double-digit expansion in the services sector.
Sensex closed 556 points, or 0.86 per cent, higher at 65,387.16 while the Nifty closed the day with a gain of 182 points, or 0.94 per cent, at 19,435.30. The indices gained 0.88 per cent and 0.77 per cent, respectively for the week after having logged losses in each of the past five weeks since hitting record highs on July 20. BSE Midcap and Smallcap indices hit their fresh record highs of 31,461.26 and 37,460.24 respectively during the session.
‘’Nifty opened positive and strengthened during the day to close near the day’s high with gains of 182 points at 19,435 levels. Broader market too ended in green up almost 1 per cent. All sectors participated in the rally, except for Pharma. Metals, Oil & Gas, PSU Bank, and Autos were major gainers today. Upstream oil companies were in the limelight as Brent crude surged to a 1-month high on the back of tighter US inventories and Russia signalled to curb oil export,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
‘Railway stocks continue to log smart gains on the back of a strong order book and rising allocation in the rail infrastructure. PSU banks saw fresh buying after rating agency Fitch affirmed ratings on India’s PSU Banks. Overall, we expect the market to trade in a range with sector- and stock-specific actions as the broader market momentum remains positive,” added Khemka.
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Updated: 01 Sep 2023, 08:02 PM IST