Indian stocks remain buoyant for third day
Apr 24, 2024
New Delhi [India], April 24 : Indian stock indices marked the third straight session of gains on Wednesday, largely due to buoyancy in the manufacturing and services sector as reflected in the PMI data.
Also, improved investor sentiment with the relative easing in tensions in the Middle East and declining oil prices supported the Indian stocks.
Sensex closed at 73,852.94 points, up 114.48 points or 0.16 per cent, and Nifty closed the session at 22,402.40 points, up 34.40 points or 0.15 per cent.
Among the widely-tracked Nifty 50 stocks, 30 advanced and the rest 20 declined. Hindalco, Cipla, JSW Steel, Tata Steel, and Power Grid Corp were the top movers, NSE data showed.
"Indian markets lagged the Asian peers as Q4 earnings remained largely subdued with weak results from IT and a few index heavyweights results also disappointed. However, buoyed by strong manufacturing and service sectors, the Indian composite PMI hit a multi-year high, reflecting domestic resilience bringing some buoyancy in the broad market," said Vinod Nair, Head of Research, Geojit Financial Services.
"Globally, investor sentiment improved with easing tensions in the Middle East and declining oil prices."
According to Ajit Mishra - SVP, Research, Religare Broking Ltd, investors should maintain their focus on sectors or themes that are showing consistency in the trend like metal, auto and defence, and accumulate them on dips.
Last week, the Indian stock market nosedived into negative territory with continued selling for the fifth session till Friday morning, succumbing to the escalating geopolitical tensions between Iran and Israel. Making a strong comeback from the early losses, Indian stock indices closed the day and the week's trading on a high on Friday.
Volatility returned in Indian stock markets after a smooth rally at the start of April. The current volatility is primarily driven by Foreign Portfolio Investor (FII) 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.
Foreign portfolio investors (FPIs), who continued to remain net buyers for the third month until a few days ago in April, have cumulatively sold stocks worth Rs 10,558 crore, National Securities Depository Limited (NSDL) showed.
