The day’s gains on Dalal Street were also boosted by the rupee rate rising 53 paise to 73.69 per dollar as the RBI did not intervene in the face of huge inflows of dollars, they said. declared. The day’s rally took investor wealth to a new high above Rs 246 lakh crore, official data shows. However, sales from Infosys, HDFC Bank and RIL limited the day’s gains.
According to Joseph Thomas, head of research, Emkay Wealth Management, the market remained buoyant during the week due to expectations of good economic and corporate performance, “mainly in a context of low interest rates and abundant liquidity “. Global markets are eagerly awaiting the US Fed Chairman’s Jackson Hole speech for more specific guidance on tapering, which could impact the market trend next week, Thomas said.
However, two factors make traders cautious, brokers said. On the one hand, after three weeks of net inflows, foreign investors became net sellers again this week. Foreign funds were net sellers at Rs 779 crore on Friday, according to BSE data. In addition, the yield of 10-year benchmark bonds shows an upward trend. On Friday it closed above the 6.25% mark.
According to Suman Chowdhury, chief analysis officer, Acuite Ratings & Research, net REIT outflows do not bode well for Indian stock markets in the near term. “After a three-year gap, REITs were net sellers of equities for $ 1.18 billion over the April-July 2021 period, compared to a massive net purchase amount of $ 4.81 billion. which has been a key market driver during the same period of the previous year ”, sales of FII can be attributed in large part to growing concerns about the decline in bond purchases by the US Fed, which are expected to begin by the end of the calendar year and normalize excess liquidity in global asset markets, he said.
Since closing above the 50,000 mark for the first time on February 3, sensex has taken 139 days to finally close above the 56,000 mark.