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Sensex, Nifty rise, increase their winning streak for 6 consecutive days

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Equity benchmarks extend winning streak for six consecutive days

Marking a winning streak of six consecutive days, Indian equity benchmarks edged higher on Wednesday in another volatile trading session.

The 30-share S&P BSE Sensex ended 214.17 points or 0.37 per cent higher at 58,350.53, and the National Stock Exchange’s Nifty 50 was up 42.70 points or 0.25 per cent at 17,388.15, marginally higher in the previous quarter. session.

Tech Mahindra, TCS, Infosys, Titan, Asian Paints, ICICI Bank, Bharti Airtel and Reliance Industries were the top gainers in the Sensex pack.

On the other hand, the laggards were Maruti Suzuki, Sun Pharma, Kotak Mahindra Bank, IndusInd Bank and Bajaj Finance.

Buying in IT stocks got strong support.

Tech Mahindra rose 1.97 per cent to Rs 1,052.85. The country’s largest IT company Tata Consultancy Services rose 1.51 per cent to Rs 3,339.60. Infosys rose 1.4 per cent to Rs 1565.15. HCL Technologies closed at Rs 956.95, up 0.63 per cent. Wipro rose 0.61 percent to Rs 422.15.

Reliance Industries Ltd, a key constituent of the index, rose 0.88 per cent to Rs 2,605.80.

Auto companies were under selling pressure after the recent rally. Maruti Suzuki closed at Rs 8956.70, down 2.29 per cent. Mahindra & Mahindra closed at Rs 1253.70, down 0.12 per cent. Sun Pharma closed at Rs 896.90, down 2.17 per cent.

Shrikant Chauhan, Head of Equity Research for Retail at Kotak Securities said, “Bubbles and bears slowed it down in a volatile charging session but ultimately maintained its winning streak on Dalal Street on buying in IT and select finance stocks. “

“Even as FII buying in local equities has resumed after a gap of 3 months, traders are taking a stock-specific approach ahead of RBI’s rate decision on Friday,” he said. Told.

That winning momentum was maintained as world stocks reversed early losses and stabilized, even as markets buoyed US House Speaker Nancy Pelosi’s visit to Taiwan and Federal Reserve officials’ aggressive interest rates. Weighed the risk about the potential for an increase in

MSCI’s benchmark for global stocks rose to multi-week highs after a rally in July, stabilizing after Tuesday’s fall.

A separate report from Reuters showed that emerging Asian equities ex-China saw monthly foreign inflows in July after a six-month capital outflow, as investors bet that the size of US interest rate hikes would be reduced, and commodity prices increased. The recent fall in prices will have an effect. Rising inflation.

“Markets have rebounded strongly with a turning point in the trajectory of foreign investor inflows – the last 4 sessions have seen FPI inflows of nearly $1 billion. A perceived pivot in the Fed’s tight cycle and cooling of crude oil prices The macro environment has turned more favorable for India, which has outperformed EM and Asian peers by 6 per cent last week, said S Hariharan, head of sales trading at Emkay Global Financial Services.

“Banks and Auto attracted the strongest inflows, while IT has been an under-performer. Going forward, the difference in valuations between the Nifty and MSCI Emerging Markets indices, as well as the Nifty versus 10-year G-Sec yield of earnings. The gap between , there will be unfavorable factors and we can expect market returns to be more muted. A pull-back towards technical support at the 200-day moving average is 17,000 possible.”

Data from stock exchanges in South Korea, India, Taiwan, the Philippines, Vietnam, Indonesia and Thailand showed foreigners net bought equities worth $1.23 billion, their first monthly net purchases since December 2021.

Reuters graphic: Monthly foreign investment inflows into Asian equities

“Despite the 75 bps increase, Fed Chair Powell’s repeated references to a ‘soft landing’ somewhat dampened fears of a recession,” Manishi Raychaudhuri, head of APAC equity research at BNP Paribas, told Reuters.

“However, when it comes to capital flows we have to be cautious about the near term as the Fed has just started QT (quantitative tightening to shrink its balance sheet) and the pace of QT will accelerate significantly by September “

Indian stocks gained $618 million in their first monthly foreign inflows since September as oil prices tumbled, alleviating some concerns over its rising trade deficit.

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