Sensex and Nifty reached new highs in early trade on Wednesday, driven by foreign money inflows and US market confidence. Reliance Industries and HDFC Bank purchases kept the markets rising.
For the sixth day in a row, the 30-share BSE Sensex rose 293.59 points to 67,088.73, a new intraday high. NSE Nifty rose 80.3 points to 19,829.55.
Sensex gains were led by NTPC, IndusInd Bank, Power Grid, Infosys, Tech Mahindra, Reliance Industries, Wipro, and HDFC Bank
On Tuesday, IndusInd Bank reported a 30% increase in consolidated net profit for April-June to Rs 2,124.50 crore, aided by core revenue growth and decreased bad loan charges.
Maruti, Mahindra & Mahindra, Asian Paints, Tata Consultancy Services, Bharti Airtel, and Nestle lagged. According to market statistics, FIIs acquired Rs 2,115.84 crore in shares on Tuesday.
The global environment and FII inflows keep the market resilient. “The global market rally is primarily driven by the strength of the US economy, which is, so far, showing no signs of recession that the markets had feared and discounted in 2022,” said Geojit Financial Services Chief Investment Strategist V K Vijayakumar.
Vijayakumar said continuous FII flows are boosting India. Tokyo traded higher, Seoul, Shanghai, and Hong Kong down. On Tuesday, US stocks rose.
Brent crude fell 0.21 percent to USD 79.46. On Wednesday, the Asian Development Bank (ADB) maintained India’s economic growth prediction at 6.4 percent for the current financial year and 6.7 percent for the next, saying solid domestic demand will sustain the region’s recovery.
On Tuesday, the BSE benchmark rose 205.21 points or 0.31 percent to 66,795.14, a new record. Nifty rose 37.80 points or 0.19 percent to 19,749.25, its all-time high.
In early trade on Wednesday, the rupee fell 8 paise to 82.12 versus the US dollar as the dollar strengthened overseas. Traders noted domestic equities indexes reaching all-time highs and continued foreign fund inflows lifted investor mood and limited depreciation.
The local unit began at 82.08 and hit 82.12 at the interbank foreign exchange, down 8 paise from its prior close. Tuesday’s rupee-dollar rate was 82.04.
Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP, said the rupee started lower as the RBI continued its US dollar purchasing binge below 82. US retail sales gained 0.07 percent, lifting the dollar index to 100.01.
Conclusion:
Sensex and Nifty hit historic highs in early trade on Wednesday. Foreign funds and US market confidence drove the market. The BSE Sensex reached a record intra-day high of 67,088.73, while the NSE Nifty rose 80.3 points to 19,829.55. NTPC, IndusInd Bank, Power Grid, Infosys, Tech Mahindra, Reliance Industries, Wipro, and HDFC Bank rose. FIIs bought Rs 2,115.84 crore in shares.
Global conditions and FII inflows keep the market strong. FII flows boost Asian markets.
