Foreign institutional investors (FIIs) buying ₹2,301.87 crore worth of equities on Tuesday triggered a market rally on Wednesday morning. BSE Sensex jumped around 318 points to 82,710.41 while the NSE Nifty gained more than 99 points to hit as high as 25,203.95 in early trade.
The rally in global markets with the optimism from the US-China trade talks added to the overall sentiment, with Asian market indices Kospi, Nikkei 225, SSE Composite, and Hang Seng in the green on Wednesday morning. The US markets also ended positive on Tuesday.
Reliance, Eternal, Tech Mahindra, Mahindra and Mahindra, NTPC, HCL Tech, and Ultra Cements led the gainers in the 30-pack Sensex, covering for laggards led by Power Grid, Adani Ports, and Maruti Suzuki.
Nifty indices for automobile, IT, pharma, metals, and oil and gas were comfortably in the green. FMCG and PSU bank indices, however, saw some red in the morning.
V.K. Vijayakumar of Geojit Investments reasoned that the markets would likely “continue in the consolidation range with a slight upward bias.”
“A clear breakout above the Nifty 25,100 level, and sustaining above this level, will require sustained large buying,” he added.
“This can happen on positive news regarding a US-China trade deal. Reports of both countries reaching an agreement to implement the Geneva Consensus are positive,” explained Vijayakumar.
Foreign portfolio investors (FPIs) turning buyers is a good sign, especially after they turned net sellers in the first week of the month, pulling out ₹8,749 crore from the Indian equity markets.
In May, FPIs invested a net ₹19,860 crore in equities and Rs 4,223 crore in April, data with the depositories showed.
