The Indian stock market had its best week in the last session till Friday. There was a growth in buying of stocks, especially in banking and IT stocks. Also, the return on foreign investments into the Indian markets appreciates.
It is an excellent news for the stock market of India as Indian stocks have been rising for six sessions on the lope.
The equity market closed at its highest in the last seven weeks. The high closing price of Indian stocks made it the best week after February 2021. Even the Nifty and Sensex rose 4 per cent during the time.
While the BSE Sensex gained 390 points and closed at 56,072. The Nifty rose 0.7% and settled at 16,719.45 on Friday evening. Thus, both the indexes hit their highest in the domestic market.
As per the NSDL data, Foreign Portfolio Investors (FPIs) have been selling equities in the domestic market. They have been in the process for the last nine to ten months.This is done except for buying the latest stocks because of various reasons. Some of the reasons are the tightening of monetary policy in advanced economies and the rise of the US dollar and bond yields. So far, they have managed to pull out Rs. 226,420 crores in 2022. Moreover, in July, they were the net buyers in India.
Sumeet Bagadia, the Executive Director at Choice Broking, said, “ The Indian market witnessed a one-way rally through the week as bulls had total control over bears. Market has ignored negative sentiments over the last week as ECB raises rates by 50 basis points, first rate hike since 2011.”
Financial markets are expected to see a change in the stock values due to the US Fed’s monetary policy meeting. Besides, the Q1 earnings of Indian companies will also impact the Indian equity market.
Buying by foreign investors in India has brought a positive change in the sentiments of the market for the time being. Hence, the market is expected to see a positive change for the Indian and foreign traders.
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