Markets gain for eighth day as FPIs step up buying; Sensex gains 235 points

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The benchmark indices gained for an eighth consecutive day on Wednesday amid sustained inflows from foreign portfolio investors (FPIs). Banking and information technology (IT) stocks lead the gains.

The Sensex gained 235 points, or 0.4 per cent, to end at 60,393 points. In the past eight trading sessions, the 30-share index has added 2,779 points, or 4.8 per cent. On the day. the Nifty50 closed at 17,812 points, with a gain of 90 points, or 0.5 per cent.

The gains come amid sharp inflows from FPIs. So far this month, overseas funds have pumped in Rs 8,500 crore ($1.05 billion) into domestic stocks. This, as global investor risk appetite has seen an improvement, stemming from optimism that the US Federal Reserve could soon pause its monetary tightening cycle.

 

"Positive FPI flows give a lot of boost to overall sentiment. A lot of individual small-cap and mid-cap stocks are rising. And it is likely to continue because there is optimism that rates have peaked. Moreover, FPIs have rarely been net sellers more than two years in a row," said G.Chokkalingam, founder of Equinomics.

The market breadth was positive with 2,036 stocks advancing and 1,480 declining. More than half of the Sensex stocks ended with gains.

HDFC Bank rose 1.3 per cent and contributed 82 points to Sensex gains. Infosys rose 1.5 per cent. Healthcare stocks gained the most and its sectoral index on BSE rose 2.2 per cent.

"Participants will react to TCS numbers in early trade on Thursday and the performance of other IT majors will also be in focus. As of now, the rotational buying across index heavyweights is helping the indices inch higher and we feel the prevailing trend to continue with some intermediate consolidation. Traders should accordingly align their positions and maintain focus on overnight risk management,” said Ajit Mishra, vice president, technical research, Religare Broking.

Nuwama aims to get listed by August, treble asset base

Wealth management company Nuvama is aiming for a listing by August this year once its demerger from Edelweiss Financial Services gets through, a top official said on Wednesday.

Edelweiss Financial Services' shareholders have already given their nod for the demerger.

Nuvama, which was earlier called Edelweiss Wealth Management, will be approaching the National Company Law Tribunal (NCLT) later this month for its approval, Nuvama's chief executive and managing director Ashish Kehair told reporters.

“We would like to do the listing as soon as possible. I feel it will get listed by July or August,” he added.

Over 55 per cent of Nuvama is owned by private equity fund PAG, while Edelweiss’ Rashesh Shah and Venkat Ramaswamy will have a 9 per cent ownership between them, he said.

The company, which has client assets of Rs 2.25 trillion at present, is targeting to more than double the same to Rs 6 trillion by 2028, Kehair said. PTI