Stock prices in the past week have seen a slight movement. The Nifty 50 has made a gain of 1.20 points in the last few days as foreign investors are on a buying spree. Experts are speculating that the worst may be kept aside for the broader market.
The stocks in small & mid-cap space are likely to see a slight turnover in the coming weeks. The S&P BSE Smallcap index rose 1.04 percent and the S&P BSE Mid-cap index dropped 0.80 percent on March 12 compared to 1.10% rise in the Sensex and 1.05% percent gain seen in the Nifty50 during the same period.
This has caused foreign investors to return to Indian stock markets. Prime Minister Narendra Modi’s party has a high chance of winning in the coming elections. There have also been hopes for deeper economic reforms and more monetary policy easing.
Inflows have been steady this month, with the market showing signs of patriotism following India’s military strike on Pakistan in retaliation for a suicide attack in the disputed Kashmir region.
Mid-cap stocks that fell short in their game in the past couple of years have been major gainers. The Nifty mid-cap 100 index jumped over 7 percent since Feb. 22, more than the overall Nifty 100 index’s 4 percent gains.
The mid-cap index fell 12 percent in 2018. Utilities, industrials, and material sectors have gained in the past two weeks, while the Indian IT sector took a hit.
Foreign Institutional Investors (FIIs) have hit the Rs 3,800 crore mark on March 11 taking total inflows to a little over Rs 8,000 crore so far in March. This pushed the S&P BSE Sensex to a 6-month high.
Meanwhile, the rupee reached 2-month high. The Indian rupee moved by 25 paise to close at 69.89 against the US dollar in sync with domestic equities, earning positive investor sentiments surrounded by hopes that the current NDA government would get the second term.
String flows from foreign investors decided to break benchmark indices above their crucial resistance levels. The S&P BSE Sensex closed at 37,054.10 on March 12 for the first time since September 19, 2018, while Nifty50 reclaimed 11168.05 for the first time since September 21.
