FIIs that turn positive boost stock markets

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New Delhi: FII turning positive after a very long period, along with strong results, kept the momentum in domestic equity markets going during the week.

Domestic equities continued their northward journey on the back of positive global indices and better-than-expected first-quarter FY23 earnings. Nifty opened higher and sustained momentum to close near the day’s high with gains of 114 points (0.7%) at 16,719.

With the exception of IT, Pharmaceuticals and Oil & Gas, all other sectors ended in the green, with Banking & Financials being the main gainers, up more than 1%.

The Nifty auto index jumped 8% in July to its all-time high of 12,690 on strong monsoon weather, expectation of a recovery in rural demand and improving oil prices. chip supply, Motilal Oswal Financial Services said in a report.

Global markets were positive despite the European Central Bank’s surprise 50 basis point rate hike, its first hike in 11 years, and weak German manufacturing PMI data.

On Monday, domestic stocks will react to the results of several index heavyweights (with more than 30% of Nifty’s weight), which would announce their numbers over the weekend, according to the report.

The Indian VIX has also cooled by around 20% to 16.65 levels over the past month, indicating lower volatility and supporting overall bullish sentiments, according to the report.

The easing in crude oil prices also boosted the rupiah on Friday.

Jateen Trivedi, VP Research Analyst at LKP Securities, said the Rupee’s trading range was limited, hovering around the 80 mark all week against the Dollar, with the Dollar Index trading between 106 and 109.

Crude price at around $105 in Brent showing volatility but returning again to the same levels of the previous week gave little boost to the rupee.

“All eyes are on the Fed’s statement and policy next week for further clues and guidance. The Rupee’s range so far can be seen between 79.75 and 80.20,” Trivedi said. .

On the global front, the US Fed meeting and US GDP data in the second quarter would be the main events to watch.

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