Robust global cues, healthy FII inflows push equities higher

MUMBAI: Robust global markets, along with healthy foreign fund inflows, aided India's benchmark equity indices to end higher for the second straight session on Thursday. The two key indices had a gap up opening but later remained in a broad positive range.

On the global front, stocks rose after US Fed Chairman Jerome Powell reiterated that interest rates would stay low for a long time, soothing market fears that higher inflation might prompt the central bank to tighten monetary policy.

In terms of the domestic market, FIIs remained net buyers. On Wednesday, FIIs pumped in Rs 28,739.17 crore in BSE, NSE & MSEI in the capital market segment. Besides, the trade session saw PSUs' continuing to outperform.

Among sectors, metals, realty, media, and PSU banks gained the most while FMCGs fell the most. Consequently, the S&P BSE Sensex gained by 257.62 points, or 0.51 per cent, to 51,039.31 points from the previous close of 50,781.69.

It opened at 51,207.61 and touched an intra-day high of 51,386.12 and a low of 50,991.76 points. The NSE Nifty50 on the National Stock Exchange closed at 15,097.35, higher by 115.35 points, or 0.77 per cent, from its previous close.

"Nifty rose for the second day with an upgap, but did not close at its intra day highs. In case we see a downgap opening and the gap is not filled soon, it could mean a near term top for the markets," said Deepak Jasani, Head of Retail Research at HDFC Securities.

"However the broader market is in good shape with advance decline ratio being hugely positive and BSE Smallcap index touching its all time high. On up moves, Nifty could face resistance at 15,176-15,188 band."

Vinod Nair, Head of Research at Geojit Financial Services, said: "Domestic market added strength on yesterday's rally supported by positive F&O monthly roll-over and robust global market. Small and mid-cap stocks continued its outperformance over the benchmark indices." (IANS)

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