Stock Market Today: Sensex, Nifty Resume Rally After One-Day Dip To Close At Record, FPIs Remain Net Buyers

Overseas investors remain net buyers of Indian equities on Wednesday.

Foreign portfolio investors bought stocks worth Rs 2,766.75 crore, according to provisional data from the National Stock Exchange.

Domestic institutional investors remained net buyers for the fourth day and mopped up equities worth Rs 2,149.88 crore, the NSE data showed.

Foreign institutions have been net sellers of Rs 18066 crore worth of Indian equities so far in 2024, according to data from the National Securities Depository Ltd., updated till the previous trading day.

The NSE Nifty 50 closed 117.75 points, or 0.53%, higher at 22,474.05, and the S&P BSE Sensex gained 408.86 points, or 0.55%, to end at 74,085.99.

• The local currency strengthened by 7 paise to close at 82.83 against the U.S. Dollar.

• It closed at 82.90 on Tuesday.

Source: Bloomberg

India's benchmark indices rebounded from one-day fall to resume its rally, and settled at record closing high as ICICI Bank Ltd., Axis Bank Ltd. gained.

The NSE Nifty 50 settled 117.75 points or 0.53% higher at 22,474.05, and the S&P BSE Sensex 408.86 points or 0.55% up at 74,085.99.

During the last leg of the trade, the NSE Nifty rose 0.63% to record high of 22,497.20, and the S&P BSE Sensex rose 0.64% to record high 74,151.27.

"Global markets witnessed mixed signals ahead of the US Fed Chair's testimony to Congress. While it's widely expected that the Fed Chair may downplay the urgency for rate hikes, the possibility of hints regarding a potential rate cut trajectory cannot be dismissed, said Vinod Nair, head of research, Geojit Financial Services.

Investors are banking on recent FOMC minutes, suggesting the policy rate may have peaked and higher rates could hinder growth. The domestic market exhibited a smart recovery in the second half, reversing initial losses as buying picked up in large-cap stocks. Nevertheless, the broader index continued to underperform with probit booking in Mid and Small caps reflecting worries about stretched valuations, Nair added.

Kotak Mahindra Bank Ltd., Axis Bank Ltd., Bharti Airtel Ltd., ICICI Bank Ltd., and Tata Consultancy Services Ltd added positively to the benchmark's rally.

NTPC Ltd., UltraTech Cement Ltd., Adani Enterprises Ltd., Oil and Natural Gas Corp of India Ltd., and Maruti Suzuki Ltd capped gains to the benchmark index.

On NSE, six sectors advanced, and six declined. The Nifty Bank index performed best among its peers with 0.82% gain, while the Nifty Media index declined the most.

Broader markets underperformed. The S&P BSE Midcap ended 0.65% lower, and the S&P BSE Smallcap settled 1.91% lower. 

On BSE, twelve sectors declined and eight ended higher. The S&P BSE Services declined the most.

Market breadth was skewed in favour of sellers. Around 2,969 stocks fell, 891 rose, and 81 stocks remained unchanged on BSE.

• Company's net total income from IPO financing stands at Rs 7 crore for 9MFY24

• IPO financing business constitutes 1.5% of the net total income

Alert: RBI barred JM Financial Products from financing against shares and debentures

Source: Exchange filing

• Growth in terms of equity opportunity in India has been immense.

• Technology shifting the world fasten than people think

• Markets way ahead of themselves on rate cuts.

• This is a golden age for fixed income.

Source: Rick Rieder, CIO, global fixed income, BlackRock at India Global Forum, Mumbai, 2024