Indian equities gain on strong global cues

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Published: May 9, 2020 8:55 AM

The markets after witnessing strong volumes on Thursday rose on thin volumes on Friday with the F&O segment on the NSE witnessing a turnover of Rs 5.7 lakh crore against the six month average of Rs 14.2 lakh crore.

indian market, indian equities, indian stocks, indian stock market, FPIs in India, sensex performance, nifty performanceThe Indian benchmarks started the day off their highs indicating that the rally was sold into.

Indian equities gained on strong global cues on Friday, as more economies around the world are coming out of a lockdown. Stocks also gained on the back of news of a possible stimulus package to be announced by the government.

The 30-share index Sensex rose 0.6% or 199.3 points to close at 31,642.7. The broader Nifty 50 rose 0.5% or 52.45 points to close at 9251.5. Index heavyweight Reliance Industries also helped pull the markets higher, following another investment it announced into Jio platforms. While the benchmarks posted gains on Friday, Nifty and Sensex so far in May have fallen by 6% each.

According to market experts, May is likely yo be a hard-hitting month for the markets where they will remian volatile. The market movement would be impacted by the quarterly results and global cues that would keep the market volatile. According to Rusmik Oza, executive vice president – head of fundamental research, Kotak Securities, said, “May could be the month of reversal of the recent rally. In the near-term the market may react to global cues and fiscal stimulus but most interim rallies are getting sold into as of now.”

The Indian benchmarks started the day off their highs indicating that the rally was sold into. However, some market experts believe that investors should continue to invest and buy into good quality companies. Axis Securities in its report suggested that investors should focus on investing and owning a concentrated portfolio of strong companies.

“The themes of digital, telecom, supply chain realignment, formalisation, staple, small ticket discretionary and large private banks will continue to generate returns for shareholders,” said Axis Securities in its report.

The markets after witnessing strong volumes on Thursday rose on thin volumes on Friday with the F&O segment on the NSE witnessing a turnover of Rs 5.7 lakh crore against the six month average of Rs 14.2 lakh crore. The cash market segment witnessed a turnover worth Rs 47,366 crore against the six month average Rs 40,898 crore. Foreign Portfolio Investors (FPIs) on Friday pumped $228.1 million into Indian equities whereas domestic institutional investors sold $198.8 million worth of Indian equities. FPIs after two consecutive months of selling have turned into net buyers in the Indian market pumping as much as $2.09 billion to the Indian equities. FPIs turned into net buyers after the Hindustan Unilever block deal that took place in the previous trading session.

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