News Tech: New Delhi: Indian stock indices extended the bull run of the past two weeks, rising slightly in early trading on Monday. At 9:38 am, Sensex was trading up 201.25 points (0.35%) at 57,771.50, while Nifty was trading up 74.60 points (0.43%) at 17,232.85. Indian equities, in particular, posted their best weekly performance in the week ending July 22nd, their best week since February 2021. This was buoyed by renewed buying in banking and IT stocks, among others. Over the last two weeks, Sensex and Nifty are up more than 7% cumulatively.
In addition, the ongoing devaluation of the rupee and depletion of India’s foreign exchange reserves also weighed on weak market sentiment. “The big plus for the Indian market is that the FPI turned into a buyer in July after nine months of constant selling. It suggests that the sexual escapism is over for now,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services. “Capital goods, automobiles, especially the passenger and commercial vehicle segments, and some pharmaceuticals are now in the spotlight following the expected increase in financials,” he added.
The return of his nine-month net buying in the Indian stock market by overseas portfolio investors may have boosted investor sentiment. In July, FPI purchased shares worth Rs 4.989 billion, National Securities Depository (NSDL) data showed. However, so far in 2022, it has sold for a total of Rs. Tight monetary policy in advanced economies, including increased demand for dollar-denominated commodities, and a stronger US dollar have fueled a steady outflow of funds from the Indian market. Investors usually prefer stable markets during periods of high market uncertainty.