The uptrend continues in Indian stocks, trading green for the 7th day

The rally in Indian equity indices extended for seven consecutive sessions on Friday, largely due to the return of foreign portfolio investors to India after several months as well as inflation which appears to be leveling off.

As of 9:47 a.m., Sensex was trading at 58,618.34 points, up 267.81 points or 0.46%, while Nifty was trading at 17,476.55 points, up 88.40 points or 0.51%. Of the Nifty 50 stocks, 39 rose this morning and the rest traded in the red, according to data from the National Exchange.

“In India, REITs turning to buyers has shifted sentiment in favor of bulls. Market momentum is so strong that it dominates negatives such as rising valuations and widening trade deficit If REIT buying continues, the market may continue to remain resilient, but investors should exercise caution,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services.

Foreign portfolio investors turned net buyers in Indian equity markets again after nine long months, boosting investor sentiment.

In July, REITs bought shares worth Rs 4,989 crore and became net buyers after nine months, according to data from the National Securities Depository (NSDL).

Tighter monetary policy in advanced economies, including growing demand for dollar-denominated commodities, and the strength of the US dollar have triggered a steady outflow of funds from Indian markets. Investors generally prefer stable markets during times of high market uncertainty.

Notably, Indian equities posted their best weekly performance in the week to July 22 marking its best week since February 2021, supported by further buying, notably in banking and IT stocks, among others.

Over the past two weeks, Sensex and Nifty are up over 7% on a cumulative basis. This week, indices are up 3-4% cumulatively so far.

(ANI entries)

Comments are closed.