On Monday, the Bank Nifty increased by 1.87 percent, reaching a new all-time high of 55,304.5. This banking index had previously achieved a record high of 54,467.35 on September 26, 2024.
The domestic benchmark indices, including the Sensex and Nifty, both rose by over 1 percent on Monday, propelled by robust quarterly results from major private sector banks and renewed interest from foreign portfolio investors (FPIs).
Market gains were further supported by optimism regarding the potential finalization of a bilateral trade agreement with the United States, as Vice President J.D. Vance is currently on a four-day visit to India.
The BSE’s 30-share Sensex climbed by 1.09 percent, or 855.3 points, closing at 79,408.5. Meanwhile, the broader Nifty index increased by 1.15 percent, or 273.9 points, finishing at 24,125.55. Both indices have experienced a rise of over 7.5 percent in the past six trading sessions.
The market capitalization of companies listed on the BSE reached $5 trillion after a three-month period.
“The market commenced the week on a positive note, building on last week’s momentum with gains exceeding one percent. Following a gap-up opening, the Nifty advanced, driven by strength in banking and financial stocks, which enhanced overall sentiment and prompted widespread buying,” stated Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd.
According to VK Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd, India appears to be relatively resilient despite the prevailing uncertainties in the global economic landscape.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, stated that India stands out as the only major economy capable of achieving a 6 percent growth rate, even amidst a global economic slowdown. He noted that this, combined with the weakening dollar, could lead to an increase in Foreign Portfolio Investment (FPI) inflows into India in the near term.
According to data from the National Securities Depository Ltd (NSDL), foreign investors purchased domestic stocks worth Rs 10,824.29 crore during the last two trading sessions on April 16 and 17.
This influx of investment from foreign investors followed a period of net selling, where they offloaded Rs 33,927 crore in local shares between April 1 and 15. The shift in FPI strategy is attributed to the declining dollar, which is influenced by growth apprehensions in the United States following President Donald Trump’s announcement of reciprocal tariffs on trading partners and the intensifying trade conflicts.
Vijayakumar highlighted that foreign institutional investors (FIIs) are likely to concentrate on domestic consumption sectors, including financial services, telecommunications, aviation, hospitality, select automotive, real estate, cement, and healthcare.
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