Indian Equity Market Archives

Stock Market Today: Sensex hits record high at 85,955,…

27 September 2024
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Stock market today: The Sensex reached a new all-time high in early trading on Friday, driven by strong buying in IT stocks and a rally in global markets. The BSE Sensex rose by 119.38 points, hitting a record high of 85,955.50, while the NSE Nifty advanced 34.5 points to 26,250.55.
Among the 30 Sensex companies, Infosys, Tech Mahindra, HCL Technologies, Sun Pharma, Tata Consultancy Services, and Tata Steel emerged as the top gainers.Meanwhile, Power Grid, Larsen & Toubro, Bharti Airtel, and Mahindra & Mahindra were among the laggards.
Indian equity benchmark indices BSE Sensex and Nifty50 continued their upward momentum on Friday. The BSE Sensex rose slightly by 57.72 points or 0.07%, during pre-open, Nifty50 followed suit, gaining 32.20 points or 0.12%. Gains were also seen in other indices, with Nifty Next 50 and Nifty Midcap Select both rising 0.15%.
Top BSE Sensex gainers included Infosys, TCS, and Sun Pharma. Infosys gained 1.61% to Rs 1,930, followed by TCS, which saw a 1.21% rise to Rs 4,343.35, and Sun Pharma, which added 0.88% rising to Rs 1,915.20. Tata Steel and Tech Mahindra also witnessed gains, up by 0.85% and 0.84%, respectively.
Meanwhile, the top BSE Sensex losers were Reliance, UltraTech Cement, and Bajaj Finserv. Reliance remained nearly flat, dropping 0.02% to Rs 3,000, while UltraTech Cement and Bajaj Finserv saw marginal declines of 0.10% and 0.12%, respectively. Kotak Mahindra Bank, ITC, and Hindustan Unilever also posted small losses, all down 0.13%.
On Friday, Hong Kong’s Hang Seng index led the gains in Asian markets, surging over 2.5% during the session. Other indices in the region remained relatively flat, with Japan’s Nikkei 225 edging up 0.10%, Taiwan’s index increasing by 0.4%, and South Korea’s KOSPI dipping by 0.04%.
In the US markets on Thursday, modest gains were recorded, with the S&P 500 rising 0.40% and the Nasdaq climbing 0.60%. Meanwhile, in Europe, France’s CAC index saw a strong rally, gaining more than 2.2%.

Science & Environment

FPIs Turn Net Sellers; Pull Out Rs 21,201 Crore…

18 August 2024
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New Delhi: Foreign investors continued their relentless selling in the Indian equity markets in August, offloading shares worth Rs 21,201 crore due to the unwinding of the yen carry trade, recession fears in the US and ongoing geopolitical conflicts.

This came after an inflow of Rs 32,365 crore in July and Rs 26,565 crore in June, data with the depositories showed.

Foreign portfolio investors (FPIs) infused funds in these two months on the expectation of sustained economic growth, continued reform measures, better-than-expected earnings season and political stability.

Before that, FPIs withdrew Rs 25,586 crore in May on poll jitters and over Rs 8,700 crore in April on concerns over a tweak in India’s tax treaty with Mauritius and a sustained rise in US bond yields.

According to the data, FPIs withdrew a net amount of Rs 21,201 crore in equities so far this month (August 1-17). So far this year, FPIs invested Rs 14,364 crore in equities, data with the depositories showed.

FPI outflows witnessed in August were mainly driven by a combination of global and domestic factors. “Globally, concerns about the unwinding of the Yen carry trade, potential global recession, slowing economic growth, and ongoing geopolitical conflicts led to market volatility and risk aversion,” Vipul Bhowar, Director of Listed Investments, Waterfield Advisors, said.

The outflow was triggered due to the unwinding of the Yen carry trade after the Bank of Japan raised interest rates to 0.25 per cent. Domestically, after being net buyers in June and July, some FPIs might have chosen to book profits following a strong rally in previous quarters.

Additionally, mixed quarterly earnings and relatively higher valuations have made Indian equities less attractive, Bhowar added. Himanshu Srivastava, Associate Director, Manager Research, Morningstar Investment Research India, said the post-budget announcement of an increase in capital gains tax on equity investments has largely fuelled this selling spree.

In addition, FPIs have been cautious due to the high valuations of Indian stocks, coupled with global economic concerns like rising recession fears in the US amid weak jobs data, uncertainty over the timing of interest rate cuts, and the unwinding of yen carry trade, he added.

A significant trend in FPI flows recently, which became pronounced in August, is the sustained selling by them through the exchange while continuing to invest through the ‘primary market and others’ category. This difference in FPI behaviour is due to the differences in valuations.

“The primary market issues are at comparatively lower valuations, while in the secondary market, the valuations continue to remain high. So, FPIs are buying when securities are available at fair valuations and selling when the valuations get stretched in the secondary market,” said VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

On the other hand, FPIs invested Rs 9,112 crore in the debt market in August so far. This has taken the tally to Rs 1 lakh crore so far in 2024.

Science & Environment

FPI Turns Positive In June With Rs 12,170 Crore…

23 June 2024
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New Delhi: Foreign Portfolio Investment (FPI) in the Indian equity market turned positive in June with a net investment of Rs 12,170 crore, according to data from NSDL. The data highlights that by June 21, FPIs had injected this amount into the equity market for the month. However, the overall net investment for the calendar year 2024 remains negative, with net selling amounting to Rs 11,194 crore.

On the last trading session of the previous week, FPIs invested Rs 2,250.20 crore in the Indian markets. The shift in FPI behaviour has been particularly noticeable since June 10, influenced by the election results. (Also Read: Gautam Adani’s 2024 Salary Revealed – Less Than Some Of His Own Employees! Find Out Here)

“Foreign Portfolio Investors (FPIs) have altered their position in the equity market following the election results, injecting Rs 23,786 crore since June 10th. There are three primary reasons for this positive inflow. First, the continuity of the government assures ongoing reforms. (Also Read: Kolkata Struggles With Soaring Vegetable Prices Due To Scanty Rainfall; Full Details Inside)

Second, the Chinese economy is decelerating, as evidenced by a 12 percent decline in copper prices over the past month. Third, certain block deals in the market have been eagerly taken up by FPIs,” said Sunil Damania, Chief Investment Officer, MojoPMS.

In contrast, may saw FPIs withdraw Rs 25,586 crore from the equity market, while in April, they were net sellers with a withdrawal of Rs 8,671 crore. This trend of outflows had created a cautious atmosphere in the market.

Market experts note that the recent FPI inflows are concentrated in a select few stocks rather than being spread across the market or sectors. They believe that high valuations currently commanded by the Indian equity market will constrain FPI inflows. While June’s figures show a positive net investment, the overall sentiment among FPIs remains one of cautious optimism, tempered by valuation concerns.

This strategic approach by foreign investors highlights their close monitoring of economic indicators and the government steps before the presentation of budget. As the year progresses, the balance of net investments will likely depend on the evolution of these factors, particularly in the context of global economic conditions and domestic policy continuity.

Tag: <span>Indian Equity Market</span>

Stock Market Today: Sensex hits record high at 85,955,…

FPIs Turn Net Sellers; Pull Out Rs 21,201 Crore…

FPI Turns Positive In June With Rs 12,170 Crore…