Sensex, Nifty soar to a two-month high as FPIs ramp up buying activity
Indian benchmark indices Sensex and Nifty closed at their highest levels in nearly two months. Foreign investors have been net buying Indian equities, contributing to market gains over the past sessions. HDFC Bank was a significant contributor to the Nifty's gains, along with other major stocks like ICICI Bank. Decreasing crude oil prices have improved market sentiment among investors recently.
Mumbai witnessed a surge in Indian benchmark indices Sensex and Nifty, reaching their highest levels in nearly two months. Foreign investor buying, along with improving corporate earnings and attractive valuations, bolstered sentiment, driving the Sensex to close at 76,917.85, up 1.6%, or 1,226 points, from its previous close. The Nifty 50 also reached 23,811, its highest close since September 4, marking a gain of 1.6%, or 371 points.
Over the past four sessions, both indices have gained around 5%. Some foreign investors might be diversifying into Indian stocks due to concerns over the durability of the AI trade, which could be volatile, according to Utsav Verma, head of research, institutional equities, Choice Equity Broking. The recent market correction has made Indian equities more appealing, with a more comfortable rupee as expectations of sharp depreciation easing.
HDFC Bank led the Nifty's gains, rising 2.9%. Out of the 50 stocks in the index, 36 advanced and 14 declined. Experts noted that a drop in crude oil prices, which decreased by over 10% in two sessions to $105 a barrel, has also contributed to the improved sentiment, but cautioned that the rally may not last unless crude prices stabilize and India's macroeconomic outlook improves.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.