Investors’ assets skyrocketed to nearly 12.75 lakh cr in 4 trading sessions, thanks to FPI inflows

The Indian market continued its upward momentum with Sensex reaching over 58,100 and Nifty 50 surpassing 17,300 on Monday. FPIs emerged as net buyers coupled with falling crude oil prices lifted the uptrend in the market. Additionally, metal companies’ monthly auto sales and production data coupled with Q1FY23 earnings boosted optimism. Investors are also focused on the RBI’s monetary policy results expected later this week. Riding the bulls, investors’ wealth has skyrocketed almost 12.75 lakh crore in last four trading sessions on Dalal Street.

In Monday, Sensex closed at 58,115.50 545.25 points or 0.95% higher. The benchmark hit an intraday high of 58,170.67.

Meanwhile, the Nifty 50 closed at 17,340.05, up 181.80 points, or 1.06%. The benchmark hit an intraday high of 17,356.25.

Auto stocks outperformed industry indexes, while metals, banking, consumer goods, capital goods and oil and gas contributed to the latest gains.

At current prices, BSE’s market cap is approximately 270,29,915,21 crore as of Aug 1. Market valuation has increased 12,74,885.77 crore from the July 26 level where it stands 2,57,55.029.44 crore.

From July 26 to August 1, Sensex increased 2,847.01 points and Nifty 50 increased 856.2 points. Both benchmarks have increased by more than 5% each.

Vinod Nair, Head of Research at Geojit Financial Services, said, “FPI net buyers are the main driver of momentum in the domestic market. Unemployment is at a record low in the Eurozone. and falling crude oil prices boosted global optimism.Oil gains were hit as a worsening demand outlook further signaled an ongoing supply shortage. focused after the announcement of positive auto sales numbers.”

On Nifty 50, Rupak De, Senior Technical Analyst at LKP Securities said, “The uptrend continues in the market as the bulls’ incursion into the 17000-17500 zone continues. The trend is likely to remain. stays positive as long as the benchmark holds above the 200 DMA, set at 17025. In the near term, 17000 is likely to act as a key support; while higher, 17500 could act Acting as key resistance. Again, above 17500, Nifty could rise towards 18000.”

According to NSDL data, FPI invested 1,470 crore on the stock market on Aug. 1. In the last month, FPI was net bought and cash inflow stood at 4,989 crore.

Notably, in June this year, foreign investors withdrew 50,203 crore from shares – highest monthly flow in 2022 so far. During the first quarter of FY23 (April-June), FPI eliminated 1,07,340 crore on the Indian stock exchange. Meanwhile, in the first six months of 2022 (January to June), capital flows in and out of the stock market revolved around 2,17,358 crore according to FPI.

In the interbank foreign exchange market, on Monday, the Indian rupee rose 23 places to close at 79.02 against the US dollar at a 4-week high amid foreign funds in the market. domestic stock market rose. In addition, the weak greenback continues to boost the rupee.

“The spot USDINR closed 23x lower at 79.02, thanks to a positive FPI flow and some carrying trade interest,” said Anindya Banerjee, Vice President of Currency and Interest Derivatives at Kotak Securities. Improvements in futures premiums have brought exporters into the market.At the same time, USD softness abroad, improved growth prospects in India and forward premiums. The upside has attracted real investors to the market who are long Rupees and short USD buyers In the short term, the trend remains bearish We expect a range of 78.70 and 79.40 at place. “

RBI Governor Shaktikanta Das along with MPC members will begin a three-day meeting on August 3 on bimonthly monetary policy. The results will be released on August 5. Most experts believe that raising interest rates between 25 basis points and 50 basis points to tame high inflation for many years. The RBI increased the policy repo by 90 basis points in the two most recent policies at a current rate of 4.90%.

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