Indian equities in Monday’s session continued to gain ground for the sixth straight day- extending its previous day’s sharp gains of over 4 per cent. Nifty at the time of writing this copy was up over 1 per cent or 262.85 at 23,613.25.
Here are the likely reasons for gains on the indices today:
FIIs returning to D-Street:
FIIs for the past two sessions have returned to the D-Street as valuations have turned out to be better. Also, the DIIs on the other hand have been net sellers for the past two sessions.
Improving macros of the Indian economy and fair valuations have turned FIIs from sellers to buyers. More importantly, this has triggered massive short covering leading to sharp spikes in prices. Even though the undertone of the market is bullish investors have to be careful, noted Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Investment Services.
Broad-based buying:
After a mild hiccup in early trade, IT stocks also posted recovery as CLSA expects these companies to post double-digit growth in FY27. Furthermore, bank, realty and oil & gas stocks led the gains. Nonetheless, only a small drag was seen in the auto pack.
Broader markets show resilience
Broader markets – the mid and smallcap stocks gained and outshined headline indices, with the smallcap stocks up over 1 per cent.
Bank and financial services surge
As predicted by Zee Business Managing Editor Anil Singhvi – banks and financials were to perform with decent gains as he predicted good movement in rate-sensitive stocks.
