From robust Asian markets to FII flows, key factors behind Sensex, Nifty rally

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Published: March 26, 2019 5:03:03 PM

The Indian headline indices Sensex and Nifty closed higher on Tuesday propelled by a rally in Asian markets amid strong foreign inflows and surge in banking stocks. The Sensex closed 425 points higher at 38,233.41, while the Nifty closed near the 11,500-mark.

The Indian headline indices Sensex and Nifty closed higher on Tuesday propelled by a rally in Asian markets amid strong foreign inflows and surge in banking stocks. The Sensex closed 425 points higher at 38,233.41, while the Nifty closed near the 11,500-mark.

Factors which drove the market today

Tracking Asian markets: Asian markets gained on Tuesday after sliding by 3% on Monday amid global economic concerns after US yield curve inverted for the first time since 2007 indicating towards recession in the world’s biggest economy US. MSCI’s broadest index of Asia-Pacific shares outside Japan was flat in early trade after two days of losses. Japan’s Nikkei rebounded 1.1 percent after a 3.0 percent fall on Monday, Reuters reported.

FII flow: In yesterday’s trading session, FIIs bought Rs 150 crore worth of stock in cash. In February, FIIs had bought stocks worth Rs 15,328 crore.  According to Foreign investment flows In the month of March, foreign portfolio investors have poured in Rs 25000 crore. In an interview with ET Now,  Nandita Parker, Managing Partner with Karma Capital said that the slowdown in developed economies, lowering oil prices and weak dollar trade are the key factors for fuelling foreign investment into the emerging markets. India has been lagging behind but it is trying to play catch up and FII flows are showing that India is in the making of a very solid scenario for the next five years.  If this government comes back there would be a fair amount of continuity and that will be something that foreign investors would look at very closely.

Rally in banking stocks: The Sensex, Nifty surged today on account of rally in private lenders stocks like HDFC Bank, Kotak Mahindra, ICICI and Axis Bank. Shares of ICICI Bank closed higher by 2.75% at Rs 394.05on BSE and on Nifty, it ended high by 2.92% at Rs 394.70. Reliance Industries also lifted the Indian indices which ended 41.90 points higher on BSE at Rs 1,367.15.

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