Strong FII inflows help Nifty reclaim18k mark
Premium- A declining dollar index also supported the markets and helped the rupee gain some strength
Benchmark equity index Nifty crossed the 18,000 mark on Tuesday, after a gap of nearly five months, on the back of strong FII Inflows and softening prices of crude oil. The 50-share index closed with gains of 0.75% at 18,070.
The 30-share Sensex, which regained the 60,000 mark yesterday, closed 0.76% higher at 60571.08 on Tuesday.
A declining dollar index also supported the markets and helped the rupee gain some strength. The rupee rose by 36 paise to close at 79.17 against the US dollar on Tuesday.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd said, “Markets continued to remain in the thick of the action, aided by strong global cues and FII buying momentum. What is adding to the fizz has been the return of the FIIs into local shares over the past month or so and the falling US dollar index".
If the US inflation level shows some moderation, markets may gain more ground, feel experts.
FPIs that were net sellers during the first half of 2022 have turned buyers having bought more than ₹23000 crore worth of equities during the second half till 12 September.
Brent crude oil traded around $94-95 a barrel levels much lower than the levels of $120 a barrel seen in June. FPI also were net buyers of equities worth ₹2049.65 crore on Monday.
The market confidence also has stemmed from strength in the Indian economy. The domestic economy is witnessing strong vigour and the same is assisting a steady growth in Indian equities, said analysts.
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Sugandha Sachdeva, Vice President - Commodity and Currency Research, Religare Broking Ltd said that the Indian rupee has perked up by around 0.45%, appreciating on the back of strong portfolio inflows, as well as the recent slide witnessed in the dollar index from two-decade highs.
The greenback as per experts has reversed course amid expectations of a cool-off in inflation and eventual softening of the Fed’s aggressive policy stance. There are a lot of concerns about the faltering global economy, but domestic equities are cruising higher amid improving risk sentiments which supports an appreciation bias for the domestic currency, said Sachdev.
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