NIFTY50: 19,749 ▲ 37 (+0.1%)
SENSEX: 66,795 ▲ 205 (+0.3%)
Hello, friends !
Recently, star gazers in the US were treated to a dazzling celestial spectacle after a meteor left a streak of green in the night sky. An emerald cosmic showstopper, indeed! Investors and traders have also been seeing green in the markets as the indices continue their winning streak. More on that later.
- Benchmark indices rose for the fourth straight day amid volatility
- In all, 29 of the NIFTY50 stocks closed in the red
- US dollar index fell below 100, the lowest level in 15 months
Among the NIFTY sectoral indices, IT (+1.0%) and Oil & Gas (+0.1%) were the top gainers, while Media (-1.8%) and PSU Bank (-1.2%) were the top losers.
| Top gainers | Today's change |
| Infosys | 1,476 ▲ 53 (+3.7%) |
| Asian Paints | 3,514 ▲ 54 (+1.5%) |
| HCL Tech | 1,165 ▲ 11 (+1.0%) |
| Top losers | Today's change |
| LTIMindtree | 5,000 ▼ 134 (-2.6%) |
| HDFC Life | 656 ▼ 10 (-1.5%) |
| SBI | 592 ▼ 8.6 (-1.4%) |
What’s trending
⭐ IndusInd Bank posts robust Q1 results
The private lender reported a 30% year-on-year (YoY) rise in its net profit to ₹2,124 crore for the June quarter. Meanwhile, its NII grew by 18% YoY to ₹4,867 crore with gross non-performing assets dropping to 1.94% from 2.35% in the same period last year.
⭐ LTIMindtree reports soft Q1 numbers
Shares of LTIMindtree fell more than 3.5% after the IT major reported muted results for the June quarter. The company’s Q1 revenue growth was flat, up merely 0.1% quarter-on-quarter (QoQ) to ₹8,702 crore. Meanwhile, its net profit rose 3.4% QoQ to ₹1,152 crore. Both revenue and net profit missed market estimates.
⭐ Rallis India rises after Tata Chem buys stake
Shares of Rallis India closed 2.3% higher after rising over 6% intraday. This came after its parent company Tata Chemicals bought an additional 4.99% stake in the agrochemicals maker at ₹215.05 per share in a deal valued at ₹208.60 crore. The acquisition has raised Tata Chemicals' stake in Rallis India to 55.04% from 50.06%
⭐ Sheela Foam acquires stake in Kurlon & Furlenco
Shares of Sheela Foam, maker of the Sleepwell brand of mattresses, closed 4.2% higher after the company acquired a 95% stake in rival Kurlon Enterprises for ₹2,150 crore. The acquisition of Kurlon is expected to be completed on or before 30 November 2023. Further, the company also announced plans to acquire a 35% stake in furniture rental company Furlenco for ₹300 crore.
In Focus
Foreign investors are flocking to Indian markets
So far in FY24, Indian markets have witnessed a record-breaking rally, with the NIFTY50 scaling new peaks every other day. One of the key factors behind this rally is consistent FII inflows. Since April 2023, FIIs has invested over $16 billion (₹1.3 lakh crore) in domestic markets, which is a staggering investment of over $1 billion (₹8,200 crore) per week. Why are foreign investors flocking to Indian markets with large investments? Let's find out.
Weakness in the US dollar
In July 2023, the US dollar index plunged to a 15-month low against a basket of currencies, falling below the 100 mark. A falling dollar index makes investments in emerging markets attractive for investors. As a result, India has seen sustained FII inflows, with over ₹33,000 crore invested so far in July 2023.
Stable quarterly earnings
Overall corporate earnings of domestic firms continue to remain stable with heavyweight companies like TCS and HDFC Bank kickstarting the earnings seasons on a positive note. As per experts, upbeat domestic earnings are attracting foreign investors towards Indian markets.
Alternative to China
At the start of 2023, FIIs pursued the ‘sell India, buy China’ strategy amid expectations that the Chinese economy could grow exponentially in the post-Covid era. However, key economic indicators like weaker GDP growth rate and manufacturing PMI falling below 50 continue to paint a grim picture of the Chinese economy.
As a result, foreign investors are looking to invest elsewhere, with India emerging as the go-to investment destination. Furthermore, investors believe the “China plus one” policy adopted by many countries, wherein countries avoid investing only in China and diversify their businesses to alternative destinations, could benefit the Indian economy.
Besides this, India’s GDP continues to be on the right track with a growth rate of 6.1% in the first quarter of 2023.
Due to the abovementioned factors, India has been the largest recipient of FIIs inflows among all emerging economies in recent months. But will FIIs inflow help NIFTY50 surpass the 20,000 in the weeks ahead? For that, we will have to wait and watch.
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