Sensex regains 60k on FII inflows, falling crude price – Times of India

MUMBAI: Four months after the sensex recorded its highest level for the current fiscal, it reclaimed on Wednesday the psychologically important 60k level and closed just about half a percent off that FY23 peak. With crude prices sliding, monthly inflation numbers showing a decline and foreign funds making a comeback into India, the index added another 418 points, its fourth consecutive session of gains, to close at 60,260.
On April 4, the sensex had ended at 60,612 points. At its current close, the sensex is about 3% away from its lifetime high of 62,245 points, recorded on October 19, 2021.

“India has been an outperformer over the last 45 days relative to both EM (emerging market) and DM (developed market) peers, gaining for cooling inflation expectations as a commodity importer as well as reducing equity risk premia, as a growth market,” said Emkay Global Financial Services head (sales trading) S Hariharan. So far this month, foreign portfolio investors (FPIs) have net bought stocks worth about Rs 39,000 crore, in addition to a near Rs 5,000-crore inflow in July, CDSL and BSE data showed. The recent inflows came after nine consecutive months of net outflows.
In the past few weeks, investors on Dalal Street also got a boost from sliding crude oil prices. After scaling a multi-year high at around $125-per-barrel in early June, Brent crude prices are now down by about 25%.
It is the biggest import item for India and petro products are a major contributor to inflation numbers. Consequently, the slide has enthused market players with the hope that the worst may be over for India in terms of some of its macroeconomic fundamentals like trade deficit and inflation.
According to Centrum Wealth head (equity advisory) Devang Mehta, in addition to foreign flows and sliding inflation print, credit growth in the banking sector (which is in the mid-teens), a decent monsoon, commentary on impending capex by companies and, above all, the first quarter earnings season that did not disappoint investors were catalysts for the recent up move in the market. “With festive season in India for the next few months, revenge shopping, eating out & revenge travel, a lot of consumption-oriented sectors would find favour (among investors)…and with credit growth and capex coming back, BFSI would also be a beneficiary,” Mehta said.
Meanwhile, UTI Mutual Fund on Wednesday denied there was any move for Tata Mutual Fund to buy a stake in the company. On Tuesday, it was reported that Tata Group was planning to buy a 45% stake in UTI Mutual Fund from some of its promoters. After UTIMF’s denial to the exchanges, the stock slid and closed 4.7% lower.