The recent market trends have been notably positive, largely driven by a combination of factors. Firstly, the ease in tensions regarding the Red Sea issue has contributed to market optimism. Additionally, there has been a reversal of Foreign Institutional Investor (FII) inflows, which has further boosted market sentiment, according to Vinod Nair, Head of Research at Geojit Financial Services.
The benchmark indices closed at record highs for the fifth consecutive day, with the Nifty reaching 21,778.70, up by 0.57%, and the Sensex ending at 72,410.38, up by 0.52%. The decline in crude oil prices below $80 a barrel led to increased buying in oil and energy companies. Moreover, expectations of more aggressive rate cuts by the US Federal Reserve in the upcoming year have positively influenced the Asian markets.
Azad Engineering made a strong stock market entry, listing at Rs 720 per share, which is notably higher than its IPO price of Rs 524, indicating a significant 37% increase, as per Vaibhav Vidwani, Research Analyst at Bonanza Portfolio.
In sectoral performance, most sectors closed in the green, with Nifty Oil & Gas and Nifty Energy showing notable growth of 2.06% and 1.51%, respectively. Oil prices, after a recent sharp decline, stabilized, leading to a more optimistic outlook for the oil and gas sector, despite ongoing tensions in the Middle East and concerns about potential disruptions along the Red Sea route.
Continued FII inflows into the Indian market have been observed, particularly during the MSCI quarterly rebalancing, with companies like Bajaj Finance, Power Grid, and ICICI Bank witnessing significant inflows, as mentioned by Vidwani.
(With Agency Inputs)
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