Equity benchmarks extend winning streak to six consecutive days
Indian stock benchmarks gained in another volatile trading session on Wednesday, marking a six straight day winning streak.
The 30-stock S&P BSE Sensex gained 214.17 points, or 0.37 percent, to finish at 58,350.53, and the National Stock Exchange’s broader Nifty 50 rose 42.70 points, or 0.25 percent. 17,388.15, after finishing slightly higher in the previous session.
Tech Mahindra, TCS, Infosys, Titan, Asian Paints, ICICI Bank, Bharti Airtel and Reliance Industries were the biggest winners of the companies that make up the Sensex.
On the other hand, the stragglers were Maruti Suzuki, Sun Pharma, Kotak Mahindra Bank, IndusInd Bank and Bajaj Finance.
“Bulls and bears knocked it out in a volatile charged session, but in the end the former kept their winning streak in Dalal Street buying IT and select financial stocks,” said Shrikant Chouhan, head of Equity Research for Retail at Kotak Securities.
“Even as FII local stock buying has resumed after a 3-month hiatus, traders are taking a stock-specific approach ahead of the RBI’s rate decision on Friday,” he added.
That winning momentum was maintained as global stocks reversed early losses and even stabilized as markets weighed the risks of US House Speaker Nancy Pelosi’s visit to Taiwan and comments from Federal Reserve officials about the potential for aggressive action. interest rate hikes.
MSCI’s benchmark for global equities fell 0.1 percent and stabilized after Tuesday’s decline that lifted the index from multi-week highs after rallying in July.
A separate Reuters report showed emerging Asian stocks ex-China saw monthly foreign inflows in July after six months of capital draws, as investors bet the size of US rate hikes would wane and a recent decline in commodity prices would dampen . rising inflation.
“The market has rebounded strongly with a reversal in the trajectory of foreign investor flows – the last 4 sessions have seen FPI inflows close to $1 billion. A perceived pivot in the Fed’s tightening cycle and the cooling of crude oil prices have The macro environment is more favorable for India, which has outperformed EM and Asian competitors by 6 percent in the past week,” said S Hariharan, Head of Sales Trading at Emkay Global Financial Services.
“Banks and autos have attracted the strongest flows, while IT has underperformed. Going forward, the gap in valuations between Nifty and the MSCI Emerging Markets index, as well as the gap between Nifty’s earnings yield versus 10-year G-Sec yield, will , would be unfavorable factors and we can expect market returns to be more moderate. A pullback to technical support on a 200-day moving average at 17,000 is possible.”
Data from exchanges in South Korea, India, Taiwan, the Philippines, Vietnam, Indonesia and Thailand showed that foreigners bought shares worth $1.23 billion net, their first monthly net purchases since December 2021.
Reuters Graphic: Monthly Foreign Investment Flows in Asian Equities
“Despite a 75 basis point rate hike, Fed Chair Powell’s repeated reference to a ‘soft landing’ has somewhat quelled fears of a recession,” Manishi Raychaudhuri, head of APAC stock research at BNP Paribas, told Reuters.
“However, we must remain cautious about the near term when it comes to capital flows as the Fed has just started QT (quantitative tightening to shrink the balance sheet) and the pace of QT will accelerate significantly through September.”
Indian equities gained $618 million in their first monthly foreign inflow since September, when oil prices fell, allaying some concerns about the widening trade deficit.
