On Tuesday, foreign investors put in nearly Rs 823 crore into the Indian stock market. This is the first time in over a month that they bought more than they sold! In the last few months, foreign investors have taken out over Rs 2 lakh crore from India. Just in January, they took out Rs 76,551 crore. Even in early February, Indian stocks faced a selling spree with Rs 5,529 crore being sold by foreign investors.
Despite these challenges, India’s main stock indices jumped up over 1.6% on Tuesday! This rise happened because concerns about trade wars faded as the U.S. decided to hold off on adding tariffs on Mexico and Canada. G Chokkalingam, a market expert, noted that this shows the U.S. is willing to negotiate. Since India’s exports to the U.S. are small compared to countries like Mexico and China, investors feel optimistic that India won’t face harsh scrutiny.
In February, the market started off weak after a mixed federal budget and worries about trade. However, these worries have made stock prices lower, attracting more buyers. Shares of major financial services jumped by 2.1%, with HDFC Bank leading the way, gaining 2.6%. Smaller companies also saw gains of about 1.1% to 1.6%.
Stocks of state-owned companies lifted by 2.7% after falling 6.3% in prior sessions, helped by oil company shares benefiting from lower crude prices and defense firms expecting more orders.
Experts believe that India might do better than other markets that are weak. The recent positive turn in global market feelings has driven a significant rise in Indian stocks. While the overall market looks good, investors prefer to buy shares of larger companies. Banking stocks are spinning upwards as people anticipate a possible rate cut during this week’s Reserve Bank of India (RBI) meeting, which will be the new governor’s first. According to Vinod Nair from Geojit Financial Services, this could boost market sentiment even more.
(Disclaimer: The opinions in this article are those of the experts and do not represent the views of NiftyStat.)
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