The Indian stock market remained resilient on Wednesday, extending its positive trajectory for the fourth consecutive session, buoyed by encouraging cues from the US markets, which recorded gains overnight.
At 9:27 am, the Sensex stood at 73,193.81 points, marking a rise of 89.20 points or 0.12 per cent, while the Nifty reached 22,255.20 points, up by 37.35 points or 0.17 per cent. With the exception of Nifty financial services and Nifty private bank, all other sectoral indices exhibited gains at the opening bell.
Analysts attributed the recent slump in indices to factors such as a strengthening US dollar, uncertainties surrounding the outcome of the Lok Sabha elections amid a declining voter turnout trend, and profit booking following a recent market rally.
“Clarity on election trends is likely to come before June 4, 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,” remarked VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Despite continued net selling by foreign investors for the ninth consecutive session, domestic institutional investors have maintained their buying streak for two weeks, offsetting the outflows from foreign investors.
Foreign portfolio investors (FPIs) have notably turned net sellers in Indian stocks, with cumulative sales amounting to Rs 8,671 crore in April, as reported by the National Securities Depository Limited (NSDL). In May, FPIs have offloaded stocks worth Rs 22,767 crore.
Meanwhile, stocks in other Asian markets also saw gains on Wednesday, following a significant rally in the US. Investor focus shifted to key inflation data, which is expected to provide insights into the future monetary policy actions of the Federal Reserve.
