Indian stock market rebounds after 3-day fall: What's fueling rally?
What's the story
India's equity benchmarks, the Sensex and Nifty, witnessed a strong recovery in early trade today. The positive momentum follows three consecutive days of losses. The rebound was largely driven by the positive performance of Asian markets and renewed interest in blue-chip stocks. Foreign fund inflows also contributed to the optimistic market sentiment.
Market performance
Nifty reclaims 25,500 mark
The 30-share BSE Sensex rose by 267.74 points or 0.32% to reach 83,484.02 in early trade today. Meanwhile, the broader NSE Nifty index gained 84.90 points or 0.33% to reach 25,577.20 at the same time. The positive trend was seen across major Sensex constituents with companies like Asian Paints, Bharat Electronics Ltd., Larsen & Toubro, Titan Company Limited and Reliance Industries leading the charge.
Global impact
Positive trend in Asian markets
The positive performance of Asian markets also played a major role in India's market recovery. South Korea's Kospi index surged 3%, Japan's Nikkei 225 gained nearly 1%, and Hong Kong's Hang Seng rose by 0.47%. However, Shanghai's Composite Index was trading marginally lower at the time. These global cues helped set a positive tone for Indian stocks in early trade today.
Investment trends
Foreign fund inflows boost sentiment
Foreign Institutional Investors (FIIs) purchased equities worth ₹4,581.34 crore on Friday. Domestic Institutional Investors outnumbered the FIIs by acquiring shares worth ₹6,674.77 crore, according to exchange data. These fresh foreign fund inflows have further bolstered investor sentiment in India's equity markets today. The positive trend was also reflected in global oil prices, with Brent crude, the global oil benchmark, rising by 0.64% to $64.04 per barrel.