Domestic benchmark indices the Sensex and the Nifty ended at record closing highs on Wednesday, June 21, on gains led by select heavyweights, including HDFC twins, Reliance Industries (RIL) and TCS even as global cues were weak ahead of the Congressional testimony of Federal Reserve Chair Jerome Powell.
Foreign institutional investors (FIIs) made a strong buying of more than ₹4,000 crore on Wednesday in Indian stocks. Also, domestic institutional investors (DIIs) emerged as net buyers with an investment of over ₹550 crore.
Vinod Nair, Head of Research at Geojit Financial Services said , “Despite hitting record highs, the domestic market failed to sustain its upward trajectory due to prevailing concerns over global issues and a delayed monsoon. Furthermore, market volatility was exacerbated by consecutive days of net selling by FIIs, while mid-cap stocks maintained their steady gains. Meanwhile, in the global market, sentiments were dampened as UK CPI inflation came in hotter than expected, adversely affecting investor confidence.
Global stock indices mostly fell on Wednesday as Federal Reserve Chair Jerome Powell said the fight to lower inflation still has a “long way” to go.
FIIs pump in whopping ₹4,013 crore in Indian stocks; DIIs invest over ₹550 crore
On Wednesday, there was a significant influx of foreign institutional investors (FIIs) into the Indian stock market, with their buying exceeding ₹4,000 crore. Additionally, domestic institutional investors (DIIs) also emerged as net buyers, making an investment of over ₹550 crore. This surge in investments led to the Sensex reaching a new all-time high, and the Nifty 50 inching closer to its previous record level. However, the overall market growth was restricted due to global trends and delayed monsoons.
According to data from the National Stock Exchange (NSE), FIIs recorded an inflow of ₹4,013.10 crore, with buying value totaling ₹13,795.52 crore and selling value at ₹9,782.42 crore.
In the meantime, DIIs purchased equities worth ₹7,704.86 crore but also sold equities worth ₹7,154.50 crore, resulting in a net inflow of ₹550.36 crore for DIIs. (Read more)
Wall Street stocks fall on Tuesday as Fed Chair Powell says inflation fight not over
Global stock indexes fell on Wednesday as Federal Reserve Chair Jerome Powell said the fight to lower inflation still has a “long way” to go, while grains prices jumped on worries about crop shortfalls around the globe.
The U.S. dollar was lower and Treasury yields were little changed.
After lifting interest rates by 5 percentage points since March 2022, the Fed this month took a breather to assess the effects of its actions. Investors broadly expect increases to resume at the Fed’s July meeting.
While Powell’s congressional testimony to lawmakers on Capitol Hill Wednesday underscored the view that the U.S. central bank will hike rates further, some investors saw the comments as less hawkish than they had expected.
The Nasdaq led declines on Wall Street, and S&P 500 technology was among the worst-performing sectors.
The Dow Jones Industrial Average fell 102.35 points, or 0.3%, to 33,951.52, the S&P 500 lost 23.02 points, or 0.52%, at 4,365.69 and the Nasdaq Composite dropped 165.10 points, or 1.21%, to 13,502.20. (Reuters)
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