Despite soaring crude oil prices, global trade tensions, banking frauds and weakness in rupee, the benchmark stock market indices - Sensex and Nifty - gained as much as seven percent in the month of April.
Despite soaring crude oil prices, global trade tensions, banking frauds and weakness in rupee, the benchmark stock market indices – Sensex and Nifty – gained as much as seven percent in the month of April. The domestic bourses recorded their best monthly performance since March 2016. In the months of February and March, stock markets plunged over ten percent. The Sensex rallied about 200 points to scale 35,000-mark on Monday, the last day of the month, while Nifty climbed 10,700 levels for the first time since 2 February. Sensex and Nifty rose by 6.7 and 6.2 percent respectively in the month of April.
Sensex closed 190 points higher at 35,160 on Monday and Nifty ended 47 points higher at 10,739. The gains on Monday were led by Housing Development Finance Corporation (HDFC) which reported strong fourth quarter numbers.
The gains on domestic bourses were led by financial and technology stocks as investors widened their exposure ahead of key corporate results, experts said. Even the favourable monsoon outlook helped the markets to recover in the month of April.
“Market continued its winning streak led by positive global cues and RBI’s ease in rules for FPIs to invest in bonds. PSU banks outperformed in expectation of stability in yield while volume growth in bond market will provide relief to rupee,” PTI reported citing Vinod Nair, Head of Research, Geojit Financial Services Ltd. Quarterly results so far have been better, contrarian bet IT industry is gaining investors’ attention owing to improving macros and strengthening dollar, he added.
Deepak Shenoy, CEO, Capital Mind, said, “The stock markets recovered a bit after two months of steady plunge. There is not much of outperformance in the bourses at present, as being projected. However, India’s markets are relatively better placed than the world markets currently. We believe momentum will continue in the days to come.”
Stock markets are closed today on account of Maharashtra Day.