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Published: Mar 30, 2023
Updated: Mar 30, 2023

Sensex and Nifty surge on firm global markets and foreign fund inflows

India's benchmark indices, Sensex and Nifty, surged on Wednesday amid strong foreign fund inflows and positive global market trends. Several sectors, including services, realty, commodities, and automobiles, contributed to the positive momentum, driving the Sensex up by 346 points and Nifty near the 17,100 level. Here's a breakdown of the key highlights from the day's trading session.

Sensex and Nifty rally on foreign fund inflows

The 30-share BSE Sensex jumped 346.37 points or 0.60 per cent to finish at 57,960.09, while the broader NSE Nifty climbed 129 points or 0.76 per cent to end at 17,080.70. The surge was largely driven by fresh foreign fund inflows, with Foreign Portfolio Investors (FPIs) turning buyers on Tuesday and purchasing equities worth Rs 1,531.13 crore, according to exchange data.

Sectoral gains and losses

Buying in services, realty, commodities and auto stocks added to the positive momentum, while Bharti Airtel, Reliance Industries, ICICI Bank, and Asian Paints were among the laggards. HCL Technologies, Tata Motors, Hindustan Unilever, NTPC, IndusInd Bank, Bajaj Finserv, Bajaj Finance, and Mahindra & Mahindra were the major gainers.

Global market trends

In Asian markets, Seoul, Japan, and Hong Kong ended in the green, while Shanghai finished lower. European markets were quoting in the positive territory during the afternoon trade. The US markets ended lower on Tuesday. The domestic market's favourable ending was supported by a significant upswing in both the US and European markets.

Expert opinion

According to Vinod Nair, Head of Research at Geojit Financial Services, the continuous instability in the international market is driving the home market to stay non-sticky in both directions. This volatility is expected to continue until the global banking system fully recovers from the turmoil, along with a confirmation of the Fed's decision to pause rate hikes. The positive momentum in the Indian markets, driven by foreign fund inflows and global market trends, has led to a surge in Sensex and Nifty. While the volatility is expected to continue, the market's favourable ending on Wednesday is a positive sign for investors.