Events and Updates

Title: Sustained inflow helps Nifty cross 11-K mark

Posted on: 7th February 2019

Mumbai: India’s benchmark indices gained for the fifth consecutive session on Wednesday, with Nifty crossing the 11000-milestone for the first time in four months, helped by sustained flows into emerging markets.

The Nifty ended up 128.10 points or 1.2 per cent to close at 11062.45 and the Sensex ended up 358.42 points or 1 per cent at 36975.23. The Sensex briefly crossed 37000 intraday, for the first time since September 21 last year. FPIs bought Indian stocks worth Rs 695 crore on Wed ..

The US Fed’s dovish outlook on interest rates has provided a shot in the arm to risk sentiment for emerging markets including India.

“Foreign flows have been positive in the last few days and that has helped frontline stocks. ETFs have seen a record inflow of almost $7 billion into emerging markets year to date. Global allocation to emerging markets has increased,” said Mahesh Patil, co-chief investment officer at Aditya Birla Sun Life Mutual Fund.

ata Steel, Bajaj Finance, ONGC, Bajaj Auto and ICICI Bank gained the most on Sensex, ending up 2-4 per cent. Indus Ind Bank and Axis Bank ended weak, down 0.6 per cent and 0.5 per cent respectively. Index heavyweights Reliance Industries, Infosys, SBI and ITC gained 1.1-1.5 per cent.

The Sensex is now 5.2 per cent away from its lifetime high of 38,989.65 which was hit on August 29 last year. Nifty is 5.9 per cent away from record high of 11,760.20 hit on August 28.

Although markets are near record high, the market breadth is weak. “The breadth of the market is not great,” said Patil. Since October 1, when the Nifty was last seen above 11000, more than 30 Nifty constituents have declined. Continued stress in the NBFC space and corporate governance issues hitting several companies have impacted sentiment in local equity markets recently.

Heavyweights such as Reliance Industries, HDFC Bank, HDFC and Hindustan Unilever have contributed to majority of the gains.