Benchmark indices ended higher for the sixth consecutive session on Weekend led by a surge in banking stocks. In the last six sessions, market capitaliation of BSE-listed firms has risen by Rs 10.39 lakh crore to Rs 261.04 lakh crore against Rs 250.65 lakh crore on July 14.
Indianstock markets are expected to see high volatility this week due to a host of factors such as US Fed rate decision, monthly derivatives expiry and announcement of results by index companies, as per analysts.
Meanwhiile, the continuous selling by Foreign portfolio Investors (FPI) appears to have taken a breather as they have turned net buyers thus far July month with an investment of nearly Rs 1,100 crore in the Indian equity market.
This comes following a net withdrawal of Rs 50,145 crore from equities in June. This was the highest net outflow since March 2020, when they had pulled out Rs 61,973 crore from equities, data with depositories showed.
There has been an exodus of Foreign portfolio investors (FPIs) from Indian equity markets over the last nine months, since October 2021. "Given the headwinds in terms of rising inflation and tightening monetary policy, we expect FPI flows to remain volatile," Shrikant Chouhan, Head - Equity Research (Retail), Kotak Securities, said.
According to data with depositories, Foreign portfolio Investors infued a net amount of Rs 1,099 crore in Indian equities during July 1-22. They have significantly slowed down their relentless selling and have even turned buyers for several days this month particularly during the last few days. Another factor that helped in net inflow was expectation of less aggressive rate hike by the US Federal Reserve.
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