The Indian market continued its momentum with the Sensex crossing the 58,100 level and the Nifty 50 crossing over 17,300 on Monday. FPIs emerging as net buyers, coupled with fall in crude oil prices, added to the bullish trend in the market. Also, metal companies’ monthly auto sales and production data along with Q1FY23 earnings boosted optimism. Investors’ attention is also on the results of RBI’s monetary policy to be held later this week. Riding on the bulls, investors’ wealth has almost skyrocketed 12.75 lakh crore in the last four trading sessions on Dalal Street.
on Monday, Sensex It closed at 58,115.50, up 545.25 points or 0.95%. The benchmark has touched an intraday high of 58,170.67.
Meanwhile, the Nifty 50 closed at 17,340.05, up 181.80 points or 1.06%. The benchmark touched the day’s high of 17,356.25.
auto stock Metals, banking, consumer durables, capital goods and oil & gas contributed to the fresh gains.
At current price, the market cap of BSE is approx. Market valuation of Rs 270,29,915.21 crore has increased till August 1 12,74,885.77 crore from the level of 26 July, where it was approx. 2,57,55,029.44 crores.
Between July 26 and August 1, the Sensex jumped 2,847.01 points and the Nifty 50 rose 856.2 points. Both benchmarks advanced more than 5% each.
Vinod Nair, Head of Research, Geojit Financial Services, said, “FPI becoming a net buyer is a key driving force in the domestic market. Record low unemployment rates in the Eurozone and fall in crude oil prices fueled optimism globally. Prices rose. Fall in demand weighed on signals of tight supply. Auto stocks were in focus after the release of positive auto sales numbers.”
On Nifty 50, Rupak Dey, Senior Technical Analyst, LKP Securities said, “The market continues to trend upward as the bulls continue to attack in the 17000-17500 zone. The trend is likely to remain positive till the time the benchmark index moves up.” Holds up. The 200 DMA is placed at 17025. In the near term, 17000 is likely to act as an important support, while at the higher end, 17500 may act as an important resistance. Again, from 17500 Above, Nifty may move towards 18000.”
As per NSDL data, FPIs invested 1,470 crore in the equity market on August 1. Last month, FPIs were net buyers and inflows were 4,989 crore.
Notably, in June this year, foreign investors almost 50,203 crore from Equity – Highest ever monthly outflow in 2022. FPI in the first quarter of FY23 (April to June) has removed 1,07,340 crore in Indian equities. Meanwhile, in the first six months of 2022 (January-June), the equity outflow is approx. 2,17,358 crore by FPIs.
At the interbank forex market, the Indian rupee on Monday closed 23 paise higher at 79.02 against the US dollar, hitting a four-week high, amid gains in foreign funds in domestic equities. Also the weak greenback strengthened the rupee further.
Anindya Banerjee, VP, Currency Derivatives & Interest Rate Derivatives, Kotak Securities said, “USDINR spot closed 23 paise lower at 79.02, FPI inflows turned positive and some trade took interest. Improvement in forward premium helped exporters. But at the same time, softening of USD overseas, a better growth outlook in India and an uptick in further premiums have attracted carry traders in the market, who go long in Rupee and short in USD “In the near term, the bias remains to the downside. We expect a broad range of 78.70 and 79.40 on the spot.”
RBI Governor Shaktikanta Das will begin his 3-day meeting on bi-monthly monetary policy on August 3 with members of the MPC. The result will be declared on 5th August. Most experts are of the view that the rate hike has been done by 25 basis points to 50 basis points to overcome multi-year high inflation. RBI has already increased the policy repo by 90 basis points in the last two policies, taking the rate to 4.90% at present.
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