Sensex rises over 200 points in early trade
Equity benchmark Sensex jumped over 200 points in early trade on Thursday, tracking gains in index majors Reliance Industries, Infosys, and HCL Tech amid a largely positive trend in global markets. The 30-share BSE index was trading 224.95 points or 0.43 percent higher at 52,668.66 in initial deals, while the broader NSE Nifty rose 62.05 points or 0.39 percent to 15,771.45.
Who were the top gainers and losers?
HCL Tech was the top gainer in the Sensex pack, rising over two percent, followed by Titan, Tech Mahindra, M&M, Asian Paints, Reliance Industries, and IndusInd Bank. On the other hand, Maruti, Bajaj Auto, HDFC, and PowerGrid were among the laggards.
Sensex had ended 0.26 percent lower in the previous session
In the previous session, Sensex ended 135.05 points or 0.26 percent lower at 52,443.71, while the broader NSE Nifty slipped 37.05 points or 0.24 percent to 15,709.40. Foreign institutional investors (FIIs) were the net sellers in the capital market as they offloaded shares worth Rs. 2,274.77 crore on Wednesday, as per the provisional exchange data.
Retail investors have increased post COVID-19: Expert
According to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, a major trend that has emerged post-COVID-19 is the rise of retail investors. They now account for 45 percent of cash market transactions on Indian exchanges, a big jump from 33 percent five years ago. "During this period the share of FIIs has fallen sharply - from 23 to 11 percent," he said.
"This domination of retail over FIIs is the reason why the markets are not correcting sharply even when FIIs sell continuously. FIIs have sold shares worth Rs. 6,100 crore this week," the expert said. "But it is a fact that most retail investors are driven by sentiments and momentum, not fundamentals," he further said.
The US Fed is not considering a rate hike
Meanwhile, in another boost to the bulls, the Fed has kept the rates unchanged and reiterated that it is "nowhere near considering a rate hike." "Also, the bounce back in Hong Kong and Shanghai indices suggests that the Chinese tech sell-off is a temporary issue and unlikely to become a contagion impacting global markets," he added.
Brent Crude was trading at $74.09 per barrel
After its latest policy meeting, the US Fed said it's keeping its benchmark short-term rate pegged at nearly zero. Equities on Wall Street ended on a missed note in overnight sessions. Meanwhile, international oil benchmark Brent crude advanced 0.30 percent to $74.09 per barrel.