Indian stocks continue uptrend; most Godrej shares rise after split in conglomerate
May 02, 2024
New Delhi [India], May 2 : Indian stock indices rose marginally Thursday morning after they witnessed mild losses in the previous session. Today's positive momentum could be linked to record GST collection in April coupled with overall stability in the economy.
At 9.33 am, Sensex and Nifty were 0.1-0.2 per cent lower each, with most of the sectoral indices in the green.
On Wednesday, stock exchanges were shut on account of Maharashtra Day. The next market holiday is on May 20 for General Elections.
On Tuesday, the stock indices settled marginally lower, snapping morning gains that were supported by strong US markets coupled with improved investor sentiment with the relative easing of tensions in West Asia.
Volatility also returned in Indian stock markets after a smooth rally at the start of April, primarily driven by Foreign Portfolio Investor selling activity. Foreign portfolio investors (FPIs) have turned net sellers in Indian stocks lately, as the ongoing geopolitical crisis in the Middle East likely pushed investors to take money off their portfolios. Domestic Institutional Investors are making up for the selling that FPIs are doing.
In other news which was widely tracked the investors, the US Federal Reserve, in its latest monetary policy meeting, voted to leave the key interest rate unchanged at 5.25-5.50 per cent, keeping the policy rate unchanged for the sixth straight time on the trot. During the COVID-19 pandemic, the interest rates were near zero.
US Fed said it was prepared to maintain the current interest rate for "as long as appropriate" so as to align the inflation rate with its 2 per cent target. Elevated interest rates are a monetary policy instrument that typically helps suppress demand in the economy, thereby helping the inflation rate decline.
Meanwhile, four of five Godrej Group-listed companies are trading in the green. The only Group company that fell at the time of filing this report was Godrej Properties. This week, the founding family of the 127-year-old Godrej Group, which deals in locks to soaps to aerospace to real estate, reached an agreement to split the conglomerate.
