Market posted strong gains, most of Adani Group stocks recover
At close, the Sensex was up 1,961.32 points or 2.54% at 79,117.11, and the Nifty was up 557.35 points or 2.39% at 23,907.25.
Indian stocks extended gains from the previous session but concerns over slowing global economic growth and the pulling out of funds by foreign portfolio investors (FPIs) from the country continue to remain.
Foreign portfolio investors (FPIs) have sold assets worth about Rs 17,237 crore in Indian stock markets so far in 2023, the latest data from National Securities Depository showed. At the time of writing this report, Sensex and Nifty were up 0.3-0.4 per cent each.
The marginal rise in indices for the second day can be partly attributed to the moderation in both retail and wholesale inflation in India.
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India’s wholesale inflation based on the Wholesale Price Index for the month of December 2022 was at 4.95 per cent (provisional), against the previous month’s 5.89 per cent. In October, it was at 8.39 and has been falling since then.
Notably, the wholesale price index (WPI)-based inflation had been in double digits for 18 months in a row till September.
Similarly, India’s retail inflation during the month of December was at 5.72 per cent. It was 5.88 per cent in November from 6.77 per cent in October. Retail inflation in India had remained above 6 per cent till October for over three quarters, which was beyond RBI’s comfort zone.
“…concerns of a global slowdown this year and the possibility of FIIs again turning sellers at higher levels will cap the upside to the market in the near term. From now on Budget expectations also are likely to influence the market trend,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
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