Rise back: Sensex and Nifty rise to two-month highs as FPIs return

Stock markets are starting the new fiscal year strong, with the front-line Sensex and Nifty50 indexes up 1.2 per cent to their highest levels in the past two months. Positive global signals, falling oil prices, and aggressive buying by foreign investors supported stock prices, even as concerns persisted about policy tightening by the US Federal Reserve and the Russia-Ukraine war.

The Sensex rose 708.2 points, or 1.2 percent, to close at 59277 – the highest closing level since February 2. The Nifty50 Index rose 206 points or 1.2 percent to close at 17,670. Both indexes gained more than 3 percent during the week and moved back into positive territory in terms of fiscal year 22 earnings. Oil prices fell in a move by the US government to release reserves To address rising costs. Brent crude prices fell 12 percent during the week. They were hovering around $105 a barrel.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,910 crore on Friday. On the previous day, they injected Rs 3,089 crore. The decline in crude oil prices and the de-escalation of the conflict between Russia and Ukraine are driving positive sentiment. Even the VIX in India is now below 20 levels and further supports the positive momentum. After a long period of underperformance — attractive valuations and hopes for a solution to the war — created interest in sectors such as media, real estate, finance, automobiles and private banking.”

The Russian invasion of Ukraine disrupted global supply chains, leading to a sharp jump in the prices of goods, fuel and food. The benchmark Sensex index fell 14 percent, from its highs in 2022, in early March to a low of 52,843. Since then, the market has seen an amazing recovery with the Sensex index up 12 percent in the space of a month.

“The stock market started fiscal year 23 on a positive note. Cabinet approval of massive energy policy, lower crude oil prices, and improved global futures have ignited the rally. The war between Russia and Ukraine and policy meetings,” said Vinod Nair, head of research at Geojit Financial Services, said Vinod Nair, head of research at Geojit Financial Services. Crude cash and RBI monetary policy meetings will be the main factors that will determine the immediate direction.”

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