Stock markets: The equity benchmark indices Sensex and Nifty continued their impressive performance on Wednesday, reaching record-high levels in early trade. This upward trend can be attributed to foreign fund inflows and optimism in the US markets. The markets also received a boost from buying in index majors Reliance Industries and HDFC Bank.
Rallying for the fifth consecutive day, the BSE Sensex climbed 293.59 points to reach a new all-time high of 67,088.73 in early trade. The NSE Nifty also saw significant gains, with an increase of 80.3 points, reaching a record intra-day high of 19,829.55.
Among the Sensex pack, NTPC, IndusInd Bank, Infosys, Power Grid, Tech Mahindra, Wipro, Reliance Industries, and HDFC Bank emerged as the biggest gainers.
IndusInd Bank witnessed a nearly 2% increase after reporting a 30% jump in consolidated net profit for April-June at Rs 2,124.50 crore. This growth can be attributed to core income growth and lower bad loan provisions.
On the other hand, Maruti, Mahindra & Mahindra, Asian Paints, Tata Consultancy Services, Bharti Airtel, and Nestle were among the laggards. Foreign Institutional Investors (FIIs) continued their buying activity, purchasing equities worth Rs 2,115.84 crore.
“The market continues to exhibit resilience, supported by the favorable global market conditions and sustained FII inflows. It is important to note that the ongoing global market rally is primarily driven by the strength of the US economy, which has not shown any signs of the recession that was feared and discounted in 2022,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
How did Asia and the US markets perform?
In India, sustained FII flows are providing an additional push, according to Vijayakumar. In Asian markets, Tokyo saw gains, while Seoul, Shanghai, and Hong Kong experienced declines. The US markets ended on a positive note on Tuesday.
Global oil benchmark Brent crude dipped 0.21% to USD 79.46 a barrel. The Asian Development Bank (ADB) has retained India’s economic growth forecast at 6.4% for the current financial year and 6.7% for the next, citing robust domestic demand as a driver for the region’s recovery.
The BSE benchmark reached a new all-time high of 66,795.14 on Tuesday, with a gain of 205.21 points or 0.31%. The Nifty also reached an all-time high of 19,749.25, gaining 37.80 points or 0.19%.
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Rupee falls against the dollar
Meanwhile, in early trade on Wednesday, the rupee depreciated 8 paise to 82.12 against the US dollar, influenced by the strength of the American currency in overseas markets. Traders noted that the domestic equity benchmarks reaching all-time highs and sustained foreign fund inflows boosted investor sentiments and limited the depreciation.
At the interbank foreign exchange, the rupee opened at 82.08, touched 82.12, and registered a decline of 8 paise compared to its previous close of 82.04 against the dollar.
Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, stated that the rupee opened slightly lower due to the Reserve Bank of India’s (RBI) continued US dollar buying spree below 82. The dollar index, which measures the strength of the greenback against a basket of six currencies, increased by 0.07% to 100.01 following positive retail sales data from the US.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
