Mumbai: Backed by a rebound in global markets, the sensex rallied through Monday’s session and closed 814 points higher at 58,014 as strong growth projections in the Economic Survey improved investor sentiment. Buying was across the board, with 27 of the 30 Sensex components closing higher, which helped it reverse a two-session drop.
The 1.4% rise in the sensex, however, came despite a Rs 3,624-crore net selling by foreign funds. Domestic funds were net buyers at Rs 3,649 crore, BSE data showed.
According to Kotak Securities head (equity research – retail) Shrikant Chouhan, as the markets were in an oversold position, Monday’s sharp bounce-back was on expected lines ahead of the Budget. “The upward bias was also supported by firm global cues and the Economic Survey report that has pegged a strong GDP growth for FY23,” Chouhan wrote in his post-market note.
The day’s rally, which was led by strong buying in Infosys, Reliance Industries and HDFC Bank, added about Rs 3.3 lakh crore to investors’ wealth. The BSE’s market capitalization now stands at Rs 267.4 lakh crore.
In the forex market, helped by strong flows of dollars from corporates, the rupee closed 42 paise stronger at 74.62 to a dollar. In the government bond market, after the RBI announced that short-term government bonds worth about Rs 1.2 lakh crore would be switched to longer dated bonds, sentiment improved and the benchmark 10-year gilt yield closed at 6.68%, softer from 6.75% on Friday.
Despite the day’s gains in the rupee, market players are keeping their stance guarded because of the strong foreign fund outflow. Data collated from CDSL and BSE showed that during January, foreign portfolio investors (FPIs) net sold stocks worth Rs 36,928 crore, the highest monthly outflow since March 2020. If the FPI outflow continues into February as the US Federal Reserve prepares for a rate hike in March, the rupee could face weakness, they said.
In the bond market, investors will keep a close watch on the Budget, especially the borrowing program for fiscal 2023 since that would have a major application on the yield’s trajectory from here on, bond market players said.
The 1.4% rise in the sensex, however, came despite a Rs 3,624-crore net selling by foreign funds. Domestic funds were net buyers at Rs 3,649 crore, BSE data showed.
According to Kotak Securities head (equity research – retail) Shrikant Chouhan, as the markets were in an oversold position, Monday’s sharp bounce-back was on expected lines ahead of the Budget. “The upward bias was also supported by firm global cues and the Economic Survey report that has pegged a strong GDP growth for FY23,” Chouhan wrote in his post-market note.
The day’s rally, which was led by strong buying in Infosys, Reliance Industries and HDFC Bank, added about Rs 3.3 lakh crore to investors’ wealth. The BSE’s market capitalization now stands at Rs 267.4 lakh crore.
In the forex market, helped by strong flows of dollars from corporates, the rupee closed 42 paise stronger at 74.62 to a dollar. In the government bond market, after the RBI announced that short-term government bonds worth about Rs 1.2 lakh crore would be switched to longer dated bonds, sentiment improved and the benchmark 10-year gilt yield closed at 6.68%, softer from 6.75% on Friday.
Despite the day’s gains in the rupee, market players are keeping their stance guarded because of the strong foreign fund outflow. Data collated from CDSL and BSE showed that during January, foreign portfolio investors (FPIs) net sold stocks worth Rs 36,928 crore, the highest monthly outflow since March 2020. If the FPI outflow continues into February as the US Federal Reserve prepares for a rate hike in March, the rupee could face weakness, they said.
In the bond market, investors will keep a close watch on the Budget, especially the borrowing program for fiscal 2023 since that would have a major application on the yield’s trajectory from here on, bond market players said.
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