Key indices rebound on unabated FII inflows

Equity benchmark indices ended nearly one per cent higher on Thursday amid continuous foreign fund inflows and buying in index majors HDFC twins and Reliance Industries (RIL). The 30-share BSE Sensex climbed 555.95 points or 0.91 per cent to settle at 61,749.25. During the day, it rallied 604.61 points or 0.98 per cent to 61,797.91. The broader NSE Nifty advanced 165.95 points or 0.92 per cent to end at 18,255.80.

“The US Federal Reserve softening its stance over future rate hike prospects cheered investors’ mood which triggered a fresh bout of buying in banking stocks. With India’s growth indicators showing good signs of revival and crude oil prices staying lower, investors are betting big on local equities even as haze over global economic growth persists,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd.

“Following a widely expected rate hike by the Fed and consistent foreign support, the domestic equities resumed its bullish momentum, driven by gains across major sectors. However, the US market faced losses as the Fed reiterated concerns over elevated inflation despite softening its language on future rate hikes. Signs of returning contagion fears in regional US banks also weighed on the global market mood,” said Vinod Nair, Head of Research at Geojit Financial Services.

Foreign Institutional Investors (FIIs) were net buyers on Wednesday as they bought equities worth Rs 1,338 crore, according to exchange data.

Among indices, financial services rallied 1.42 per cent, telecommunication jumped 1.40 per cent, bankex (0.86 per cent), industrials (0.75 per cent), commodities (0.74 per cent) and metal (0.74 per cent). FMCG was the only laggard.