Indian Markets Trade Higher In Early Trade Amid Fresh Foreign Fund Inflows
Indian markets began the trading session on March 29, 2023, on a positive note, driven by fresh foreign fund inflows and buying in HDFC twins. The 30-share BSE Sensex surged by 218.68 points to 57,832.40, and the broader NSE Nifty climbed by 71.5 points to 17,023.20. The gains of the major gainers such as Mahindra & Mahindra, Hindustan Unilever, HCL Technologies, Tata Motors, Bajaj Finserv, Bajaj Finance, HDFC Bank, and HDFC fueled the positive sentiments. However, IndusInd Bank, Reliance Industries, Tata Steel, and Axis Bank were the laggards.
The markets received a boost from the foreign portfolio investors (FPIs) who bought equities worth Rs 1,531.13 crore on Tuesday. The gains in the Indian markets were also in sync with the other Asian markets. Japan and Hong Kong traded in the green, while Seoul and Shanghai quoted lower. However, the US markets ended lower on Tuesday, and it is expected that cues from the mother market, the US, on inflation, the Fed response, and the banking crisis-related news will weigh on markets in the near term.
The Indian markets have been witnessing a rollercoaster ride for the past few years due to various factors, such as the COVID-19 pandemic, economic slowdown, and geopolitical tensions. However, the markets have shown resilience and bounced back on the back of strong economic indicators and positive sentiments from investors.
One of the significant factors driving the markets is the foreign fund inflows, which have been robust for the past few months. The FPIs have been betting on the Indian markets due to the country's strong economic growth prospects, favorable demographic dividend, and the government's push for reforms and ease of business. The government has been taking several initiatives to boost the economy and attract foreign investments, such as the National Infrastructure Pipeline (NIP), Production-Linked Incentive (PLI) scheme, and Atmanirbhar Bharat Abhiyan.
The positive sentiments in the markets are also due to the buyer in the HDFC twins, which are considered bellwether stocks in the Indian markets. HDFC Bank and HDFC are the major gainers, and their gains have contributed significantly to the surge in the Sensex and Nifty. The HDFC twins have a significant weightage in the indices and are closely watched by investors.
The Indian markets will likely remain range-bound for some days before taking a new direction, as there are no significant near-term cues. The cues from the mother market the US on inflation, the Fed response, and the banking crisis-related news will be critical for the markets in the near term. Investors will watch the global oil benchmark Brent crude, which advanced 0.19 percent to USD 78.80 per barrel.
In conclusion, the Indian markets began the trading session positively, driven by fresh foreign fund inflows and buying in HDFC twins. Due to various factors, the markets have witnessed a rollercoaster ride for the past few years. Still, the markets have shown resilience and bounced back on the back of strong economic indicators and positive sentiments from investors. The FPIs have been betting on the Indian markets due to the country's strong economic growth prospects, favorable demographic dividend, and the government's push for reforms and ease of business.
