Stock indices started Wednesday’s session marginally higher, keeping the positive momentum intact for the fourth straight session, primarily tracking positive cues from the US markets which rose overnight.
At 9.27 am, Sensex was at 73,193.81 points, up 89.20 points or 0.12 per cent, and Nifty at 22,255.20 points, up 37.35 points or 0.17 per cent. Barring Nifty financial services and Nifty private bank, all other sectoral indices were up at the opening bell.
Over the last week, indices had slumped consistently, which analysts asserted was due to a strong US dollar, uncertainty in Lok Sabha elections outcome after a decreasing voter turnout trend seen so far in the phases that went to vote, and a profit booking after the recent rally.
“Clarity on election trends is likely to come before June 4th, the counting day, and the market response can be strong. Buy on dips would be a good strategy now. FII-heavy stocks which have borne the brunt of FII selling are good picks for bottom fishing. Leading banks, capital goods majors, leading autos and top IT companies like TCS are fundamentally strong,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Overseas investors remained net sellers of Indian equities for the ninth consecutive session on Tuesday. However, domestic institutional investors stayed net buyers for a fortnight now, making up for the outflows by the foreign investors.
Foreign portfolio investors (FPIs) have turned net sellers in Indian stocks lately.
Foreign portfolio investors (FPIs), who continued to remain net buyers for the third month until mid-April, have cumulatively sold stocks worth Rs 8,671 crore during the month, National Securities Depository Limited (NSDL) showed. So far in May, they have sold stocks worth Rs 22,767 crore.
Meanwhile, stocks in other Asian countries rose Wednesday, following a big rally in the US, as investors look to key inflation data later in the day which will give some hint about the future monetary policy action of the Federal Reserve.