Business

Equity benchmark indices rise on firm foreign fund inflows

On Monday, Indian equity benchmark indices opened on a firm note and extended their previous day’s rally, backed by continuous foreign fund inflows. The 30-share BSE Sensex rose by 188.57 points to reach 62,216.47, while the NSE Nifty gained 48.9 points to 18,363.70.

Tata Motors, which announced its Q4 earnings, was among the biggest gainers on the Sensex, jumping over 3%. Other top performers included Tech Mahindra, Asian Paints, Hindustan Unilever, UltraTech Cement, Bharti Airtel, Infosys and Nestle. These companies have benefited from rising domestic demand, pricing actions, and easing supply chain issues.

In contrast, Maruti, IndusInd Bank, NTPC, and Tata Steel were among the laggards.

Foreign Institutional Investors (FIIs) bought equities worth Rs 1,014.06 crore on Friday, according to exchange data. Foreign investors have shown strong buying interest in Indian equities in May and invested more than Rs 23,152 crore in the first fortnight.

In Asia, Tokyo and Hong Kong markets were trading in the green, while Seoul and Shanghai quoted lower. The US market ended marginally lower on Friday.

Chief Investment Strategist at Geojit Financial Services, V K Vijayakumar, said that even though the Congress victory in the Karnataka elections was much better-than-expected, it is unlikely to have a negative impact on markets. In the near-term, FPI inflows backed by improving fundamentals are driving the markets.

On Friday, the BSE benchmark gained 123.38 points or 0.20 per cent to settle at 62,027.90, the highest closing level since December 12, 2022. The Nifty edged up 17.80 points or 0.1 per cent to 18,314.80.

Meanwhile, global oil benchmark Brent crude declined 0.84 per cent to USD 73.55 per barrel.

Tata Motors reported a consolidated net profit of Rs 5,408 crore for the March quarter, driven by rising domestic demand, pricing actions, and easing supply chain issues. The company aims to improve its profit margins this fiscal despite headwinds.

Overall, the Indian equity market is buoyed by strong foreign investor interest, backed by improving domestic fundamentals.

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