Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Markets / Stock Markets/  Investors' wealth soars to nearly 12.75 lakh cr in 4 trading sessions, thanks to FPI inflows
BackBack

Investors' wealth soars to nearly ₹12.75 lakh cr in 4 trading sessions, thanks to FPI inflows

FPIs emerging as net buyers coupled with a fall in crude oil prices lifted the bullish tone on the market. Also, monthly auto sales and production data of metal companies along with Q1FY23 earnings boosted optimism.

Riding on the bulls, investors' wealth has skyrocketed by nearly ₹12.75 lakh crore in the last four trading sessions on Dalal Street. (REUTERS)Premium
Riding on the bulls, investors' wealth has skyrocketed by nearly 12.75 lakh crore in the last four trading sessions on Dalal Street. (REUTERS)

Indian market continued their gaining momentum with Sensex reaching over 58,100 mark and Nifty 50 crossing more than 17,300 level on Monday. FPIs emerging as net buyers coupled with a fall in crude oil prices lifted the bullish tone on the market. Also, monthly auto sales and production data of metal companies along with Q1FY23 earnings boosted optimism. Investors' focus is also on RBI's monetary policy outcome scheduled for later this week. Riding on the bulls, investors' wealth has skyrocketed by nearly 12.75 lakh crore in the last four trading sessions on Dalal Street.

On Monday, Sensex closed at 58,115.50 higher by 545.25 points or 0.95%. The benchmark has touched an intraday high of 58,170.67.

Meanwhile, Nifty 50 ended at 17,340.05 up by 181.80 points or 1.06%. The benchmark touched the day's high of 17,356.25.

Auto stocks outperformed sectoral indices, while metal, banking, consumer durables, capital goods, and oil & gas contributed to the latest upside.

At the current price, the BSE market cap is around 270,29,915.21 crore as of August 1. The market valuation has climbed by 12,74,885.77 crore from July 26th level where it stood around 2,57,55,029.44 crore.

From July 26 to August 1, Sensex climbed by 2,847.01 points and Nifty 50 jumped by 856.2 points. Both benchmarks have advanced by more than 5% each.

Vinod Nair, Head of Research at Geojit Financial Services said, "FPIs turning net buyers is the major factor driving the uptick in the domestic market. Record low unemployment rate in the Eurozone and fall in crude oil prices increased optimism globally. Oil prices took a hit as the deteriorating demand outlook outweighed cues of ongoing supply tightness. Auto stocks were in focus post the release of positive auto sales numbers."

On Nifty 50, Rupak De, Senior Technical Analyst at LKP Securities said, "The uptrend continues in the market as the bulls' invasion of the 17000-17500 zone continues. The trend is likely to remain positive as long as the benchmark index sustains above 200 DMA, placed at 17025. Over the near term, 17000 is likely to act as crucial support; whereas on the higher end, 17500 may act as crucial resistance. Again, above 17500, the Nifty may move up towards 18000."

As per NSDL data, FPIs invested 1,470 crore in the equity market on August 1. In the previous month, FPIs were net buyers and the inflow stood at 4,989 crore.

Notably, in June this year, the foreign investors pulled out about 50,203 crore from the equities - the highest monthly outflow in 2022 as of now. In the first quarter of FY23 (April to June), FPIs have removed 1,07,340 crore in the Indian equities. Meanwhile, in the first six months of 2022 (January - June), the outflow in the equities is around 2,17,358 crore by FPIs.

At the interbank forex market, on Monday, the Indian rupee rose by 23 paise to close at 79.02 against the US dollar at a four-week high amidst an uptick in foreign funds in the domestic equities. Also, the weak greenback further boosted the rupee.

Anindya Banerjee, VP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities said, "USDINR spot closed 23 paise lower at 79.02, thanks to FPI flows turning positive and some carry trade interest. Improvement in forward premium has brought exporters into the market. At the same time, softness in USD overseas, improved growth outlook in India and uptick in forward premium has attracted carry traders into the market, who go long Rupee and short USD. Over the near term, bias remains downward. We expect a broad range of 78.70 and 79.40 on spot."

RBI governor Shaktikanta Das along with members of MPC will begin their 3-day meeting on August 3rd on bi-monthly monetary policy. The outcome will be announced on August 5. Majority of experts believe a rate hike in the range of 25 basis points to 50 basis points to tame multi-year high inflation. RBI has already raised policy repo by 90 basis points in the last two policies taking the rate to 4.90% currently.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 01 Aug 2022, 10:05 PM IST
Next Story footLogo
Recommended For You
GENIE RECOMMENDS

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie