Foreign Institutional Investors (FIIs) on Monday around 923 crore was recorded in Indian equity. Domestic Institutional Investors (DIIs) maintained their buying momentum for the second day in a row. Indian equities jumped as participants globally watched progress on the US debt ceiling. The Sensex inched closer to the 62,000-mark, while the Nifty 50 held steady at 18,300.
According to NSE data, the value of FII buying was 6,956.61 crore and at the selling price 6,033.72 crore in Indian equities on May 22 registering an inflow of — 922.89 crores.
Meanwhile, the purchase price of DII was at 5,486.82 crores and at the selling price 4,882.25 crore – registering an inflow of 604.57 cr.
Last week on Friday, FII sold for the first time in the month of May. 113.5 crore in equity. However, DII pumped 1,071.35 crores.
In relation to the Indian benchmark, the Sensex closed at 61,963.68, up 234 points or 0.38%. On the other hand, Nifty 50 closed at 18,314.40 with a jump of 111 points or 0.61%.
May 22 witnessed widespread buying across the board with IT stocks outperforming. Significant gains were also seen in capital goods, consumer durables, healthcare, metal and oil & gas stocks. However, banking stocks were under pressure after RBI announced withdrawal 2000 bank note — which is 10.8% of India’s currency in circulation.
About 1,773 scrips advanced, while 1,843 scrips declined and 172 scrips remained unchanged. Meanwhile, 135 scrips touched fresh 52-week highs and 56 scrips touched 52-week lows today.
Ajit Mishra, VP – Technical Research, Religare Broking said, “Markets started the week on a strong note, continuing Friday’s rally and rallying over half a percent. Meanwhile, the sectoral trend was mixed Markets kept traders busy with gains in IT, metals and pharma sectors, while banking and financial sectors were a marginal laggard.
FII has invested heavily in May so far 18,299.20 crore in Indian equities – which is currently the highest monthly buying of 2023. In contrast, DII has taken out its money. 4,070.11 crores.
For Tuesday’s trading session, Mishra said, “Markets are taking a break from flip-flop buying across sectors amid mixed global cues. Recent participation by IT majors is certainly encouraging, but stability is the key ahead.” Amidst all this, we reiterate our positive outlook and recommend continuing with the stock-specific trading approach.”
According to Mitul Shah, head of research at Reliance Securities, the earnings season is nearing its end. The sample of NSE 500 companies that have reported their results so far shows an annual revenue growth of 15.3%. Low inflation and industrial growth provide room for the RBI to continue with its pause in the rate hike cycle. The decline in WPI augurs well for CPI in future months as lower raw material prices are passed on by producers to consumers which will also help revive sluggish consumption.
Disclaimer: The views and recommendations given above are of individual analysts or broking companies and not of Mint. We advise investors to do due diligence with certified experts before making any investment decision.
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