05 Dec , 2024 By : Debdeep Gupta
India's benchmark indices, Sensex and Nifty, extended their gaining streak for the fifth consecutive session on December 5, driven by gains in Asian and global markets. The return of foreign institutional investors (FIIs) after two months of heavy selling also boosted market sentiment.
At 9:25 am, Sensex rose 0.17 percent to 81,096 points, while Nifty gained 0.14 percent to 24,501 points. Over the last five sessions, both indices have surged over 2.5 percent each.
FIIs invested a combined Rs 13,000 crore in Indian equities on December 2 and 3, according to NSDL data, and Rs 1,797 crore on December 4, per NSE provisional figures. This follows significant FII outflows of Rs 94,017 crore in October and Rs 21,612 crore in November.
Global equities strengthened, buoyed by Federal Reserve Chair Jerome Powell’s optimistic remarks about the US economy and a surge in US tech stocks, despite uncertainties in South Korea and France. Powell noted that the US economy is in “remarkably good shape” and suggested that Fed officials could take a cautious approach in lowering interest rates toward a neutral level. His comments fueled optimism and pushed the Dow Jones past 45,000 for the first time, highlighting the resilience of the US market rally.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted that strong growth and declining inflation in the US underpin this rally but expressed concerns about stretched valuations in both US and Indian markets. He emphasized the importance of caution in such scenarios. He also noted that renewed FII buying supports large-cap stocks, particularly in the banking sector, which could drive the Bank Nifty to record highs and further propel the broader Nifty index.
Among Sensex gainers, Infosys led with a 1 percent rise, followed by TCS and Bajaj Finance, up 0.7 percent each. PowerGrid Corp was the top loser, declining 0.6 percent, with Maruti Suzuki India and NTPC slipping 0.4 percent each. Sectorally, Nifty IT rose 0.8 percent, while Nifty Auto and FMCG gained 0.1 percent each. On the downside, Nifty Pharma fell 0.5 percent, followed by Nifty Realty and Healthcare, down 0.2 percent each.
Investors now await the Reserve Bank of India’s bi-monthly policy review on December 6. The central bank is widely expected to keep policy rates unchanged for the 11th consecutive time, amid elevated inflation levels, according to a survey of economists, bankers, and fund managers. However, economists suggest that the RBI may consider a reduction in the cash reserve ratio (CRR) in light of slower economic growth in the second quarter of the fiscal year.
0 Comment