New Delhi [India], May 4 (ANI): Strength in Indian stock indices continued from the past few sessions which opened in the green on Thursday, but was limited as US Fed in its fight against inflation raised interest rates by another 25 basis points.
The US monetary policy committee, seeking to achieve inflation at 2 per cent over the longer run, hiked the key interest rate by another 25 basis points to 5.0-5.25 per cent. The latest hike was the same size as its previous rate increase in the March meeting and marked the tenth straight rate hike.
At 10:14 am, Sensex was trading 108.51 points higher at 61,301.81, whereas Nifty was trading 39.10 points up at 18,128.95.
When this report was written, benchmark indices Sensex and Nifty rose 0.1-0.2 per cent from their previous close.
Also, firm GST collections and continued foreign fund inflows supported Indian stocks.
The gross GST collection in April 2023 was at its all-time high of Rs 187,035 crore, Rs 19,495 crore more than the following highest collection of Rs 167,540 crore recorded in the same month last year.
Coming to foreign fund inflows, foreign portfolio investors (FPIs) have remained net buyers in Indian stock markets for the second straight month after having sold two months on a trot in January and February, the latest data from the National Securities Depository (NSDL) revealed. FPIs bought assets worth Rs 11,631 crore in Indian stock markets in April and Rs 7,936 crore in March.
The weakness in the US dollar has once again made Indian and other emerging equity markets lucrative for foreign institutional investors.
“The strength of the rupee and the continued buying by FIIs will impart strength to the market.
High-frequency indicators in India reflect a resilient economy with improving earnings prospects. The sharp decline in crude is an extra bonus to the macroeconomy and benign for segments like paints, adhesives and tyres,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Meanwhile, US stocks ended lower on Wednesday, after its central bank raised interest rates while signalling it could be the last move in the most aggressive monetary tightening cycle in four decades, said Deepak Jasani, Head of Retail Research, HDFC securities. (ANI)
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