Indian stock exchanges are closed on Thursday for Eid, with regular trading set to resume on Friday. Following a minor correction on Tuesday, Indian stock indices saw a rebound into positive territory on Wednesday. Both the benchmark indices, Sensex and Nifty, climbed approximately 0.5 per cent each during the trading session. This positive momentum continued from last week, which marked the beginning of the new financial year starting on April 1.
Looking ahead, investors will be closely monitoring India’s retail inflation data for March, set to be released on Friday. Additionally, heat wave alerts issued by the weather bureau will also be watched for any potential impact on market sentiment.
India’s current retail inflation is within the Reserve Bank of India’s (RBI) comfort range of two to six per cent, but it remains slightly above the ideal scenario of 4 per cent. As of February, inflation stood at 5.09 per cent. While inflation has been a concern for many countries, including advanced economies, India has managed to navigate its inflation trajectory relatively well.
The next upcoming stock market holidays are scheduled for April 17 and May 1, observed for Shri Ram Navami and Maharashtra Day, respectively.
In addition to domestic factors, sustained inflows of funds from foreign portfolio investors (FPIs) have been providing support to Indian stock markets. FPIs turned net buyers for the second consecutive month in March in Indian stock markets. This came after they had been net sellers in the Indian equity market in January 2024.
Recent data from the National Securities Depository Limited (NSDL) revealed that FPIs purchased stocks amounting to Rs 35,098 crore in March. In February, their purchases amounted to Rs 1,539 crore. As of April, FPIs have already bought stocks worth Rs 10,117 crore, as per NSDL data.
This influx of foreign investments, coupled with positive domestic market sentiments, has contributed to the buoyancy of Indian stock markets despite global economic uncertainties. Investors will be monitoring key economic indicators and market trends closely for further cues as trading resumes on Friday.
