Nifty 50, Sensex has risen by more than 7% since April 7 low as FPI's Return | Einsmark news

Indian benchmark indices continued with the rally on Thursday and have risen more than 7% since their recent lows amid Trump’s tariff-flip flips. The Nifty 50 index closed 1.77% on Thursday, with 414.45 points at 23,851,65. Sensex closed 1.96% at 78,553.2. Since its last low of 21,743.65 on April 7, the Nifty 50 index has recovered 7.43%. The Indian benchmarks have dropped more than 5% since US President Donald Trump announced rates on April 2. After Trump interrupted rates on all trade partners except China, the subsequent rally in Nifty 50 wiped out the losses by April 15 and has since expanded the profits. FPI purchases Momentum Foreign Portfolio Investors (FPIs) were net buyers for the third consecutive day on Thursday and pitched the shares worth £ 4.668, according to preliminary data by NSE. In the past three days, FPIs have bought net shares worth £ 15,492. During the period, domestic institutional investors (DIIs) were net sellers and downloaded shares worth £ 6.470 crore. “FIIs have been net buyers in the market for the past three days – something that has been quite rare for the past six months,” says Alok Agarwal, head of quantity and fund manager at Alchemy Capital Management. Agarwal is the best sectoral award in FPI portfolios, largely due to its high weight in benchmark indices, Agarwal says. With the reduction of interest rates and several banks that lower the deposit rates, the sector has a cost benefit, he said. “Several factors such as rate cuts, improved margins and potential FII purchases appear to be in favor of the banking and financial sector, which may drive the recent market momentum in that space,” says Agarwal. The top shares that moved 50 on Thursday were Icici Bank Ltd, Reliance Industries Ltd, HDFC Bank Ltd, and Bharti Airtel Ltd. The top Nifty Sectoral Movers included financial services, oil and gas and telecommunications. The wider Nifty 500 and BSE 500 indices both closed 1.31% higher. The domestic markets have detected Asian counterparts. Hong Kong’s Hang Seng ended 1.61% higher, while Kospi closed 0.94% higher and Shanghai composition ended 0.13% higher. Still, Nifty 50 9.02% is lower than its peak in September, when foreign investors started selling about valuation problems and the slowdown of earnings. US President Donald Trump’s tariff uncertainty has contributed to the sale. On April 2, including 26% on India, he introduced the rates on trade partners, but later interrupted the levy. However, the US and China remain busy with a tariff war. The Reserve Bank of India (RBI) is concerned about the impact of the ongoing tariff war, Governor Sanjay Malhotra said on April 9 after the RBI monetary policy committee lowered the lending rate of the benchmark and lowered its position. “The expectation of further policy reduction as a result of domestic inflation dropping to 67 months lows, the improvement in the liquidity of banking and discussions on US -countries affected by trade tariffs, had the optimism among the market participants,” said Akshay Chinchalkar, head of research at Axis Securities. India’s retail inflation relieved in March to its slowest rate in more than six years since August 2019 at the back of lower food prices, providing provisional government data released on Tuesday. Retail inflation, based on the Consumer Price Index (CPI), rose 3.34% annually in March, lower than the 3.61% registered in February and reported 4.85% in the previous year. Chinchalkar said the expectations of strong results, a benign liquiditycenario, FPI that buys in big caps and a muted fallout of the tariff war for India-at least so far-has stopped the spirits. Others said although investors should see how tariff negotiations play out, they should pay attention to the impact on currencies and credit markets. “Countries want to compensate the impact of rates through more supportive monetary and fiscal policies,” says Ashish Gupta, Axis Mutual Fund investment officer. “However, if bond yields continue to rise as seen in the past month, the ability to undertake the expansion of fiscal and accommodating monetary policy will be limited. One must also look at the growth momentum in the current results.” Since January 1, the dollar index has dropped 9.06% and 4.16% since Trump announced on April 2. While Trump has increased the global trade with its tariff flips, India seems to be better placed than some of the other economies. Moody’s ratings said in a report on Wednesday that the economy of India is likely to defend the latest wave of US tariff increases with only limited fall. But it has warned that broader global trading tensions worldwide can weigh on economic growth and credit conditions. Read more: Icici Prudential: Street is being published the hope of the margin recovery first: 17 Apr 2025, 10:24 pm Ist