Feedback | Wednesday, June 19, 2024

Nifty, Sensex open flat; DIIs sustain market momentum

Indian benchmark indices opened cautiously on Wednesday, with buying by Domestic Institutional Investors (DIIs) offsetting selling by Foreign Institutional Investors (FIIs).

The Nifty 50 index rose by 20 points to reach 22,549.70 from the previous close of 22,529.05, while the Sensex also gained 91 points to reach 74,044.53 after closing at 73,953.31 on Tuesday.

“One inference that can be drawn from institutional activity this month is that there is no excessive concern regarding the much-talked-about election results jitters. Net institutional selling is almost nil, as the FII selling of Rs 37,500 crores has been neutralized by DII buying of Rs 37,369 crores so far this month. It is important to understand that FII selling has been triggered by the outperformance of Chinese stocks, which nudged FIIs to sell in expensive India and buy in cheap Hong Kong. Therefore, institutional activity does not reflect any election-related jitters” said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

“The market is likely to respond to the election outcome earlier than June 4th. Investors can consider buying stocks before the results, prioritizing large caps that are fairly valued compared to the broader market, where valuations are much higher. A possibility around the election results time is that both FIIs and DIIs could turn into buyers, lifting the large caps and the indices to higher levels,” he added.

The Volatility Index has decreased by 9 percent recently, indicating a return to market stability. On Wednesday’s trading session, 22 stocks in the Nifty 50 index were trading in advance, while 26 were trading in decline, with two remaining unchanged.

Coal India, Hindustan Unilever, Britannia, Reliance, and UltraTech Cement emerged as the top gainers, while Hindalco, Shriram Finance, Sun Pharma, JSW Steel, and Tata Steel were among the top losers.

(With ANI input)

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Last Updated: 19th Jun 2024