Latest stock rally turns Indian investors richer by over Rs 9 trn
Indian equity markets recorded their best weekly performance during this week, supported by renewed buying, especially in banking and IT stocks as well as the return of foreign investments into the Indian markets after months.
NEW DELHI: The latest consistent rally in Indian stocks has made investors richer by over Rs 9 trillion in the week that ended on Friday. The all-India market capitalization rose from Rs 25,190,063.14 crore on July 15 to Rs 26,106,487.37 on Friday, Bombay Stock Exchange data showed.
Indian equity markets recorded their best weekly performance during this week, supported by renewed buying, especially in banking and IT stocks as well as the return of foreign investments into the Indian markets after months. The Indian stocks have been rising for six sessions on a trot.
The domestic equity market closed at its highest level in seven weeks, marking its best week since February 2021. Sensex and Nifty during the week rose around 3-4 per cent on a cumulative basis.
IndusInd Bank, UltraTech Cement, Axis Bank, Grasim Industries, and Hindalco Industries were the top gainers for the week, while Dr. Reddy’s Labs, HDFC life Insurance, NTPC, and Sun Pharma Industries were the top losers.
Foreign Portfolio Investors (FPIs) had been selling equities in the Indian markets for the past nine-to-ten months barring the latest buying due to various reasons, including tightening of monetary policy in advanced economies, and rising dollar and bond yields in the US. They have pulled out Rs 226,420 crore so far in 2022, NSDL data showed.
In July so far, they were, however, the net buyer.
Next week, the financial markets will react to the outcome of the US Fed’s monetary policy meeting, besides the Q1 earnings of companies in India.
Decent buying by foreign investors after a long time has turned positive sentiments for the near term.