Previously on selling spree, Foreign Institutional Investors now initiate buying

The Indian stock markets witnessed a remarkable surge this week, reaching new historic highs. Foreign Institutional Investors (FIIs), previously on a selling spree, have now shifted their stance, drawn by the ascending Indian markets. FIIs have initiated fresh buying, impacting the market positively, with each trading session yielding new gains. In a special Saturday trading session, the BSE index hit an unprecedented high of 73860.12, and NSE index reached an all-time peak of 22395 points. However, a subsequent dip occurred due to slight profit booking, leading both the BSE and NSE indices to close slightly below their pinnacle levels.

The Indian stock markets are exhibiting a robust trend, attributed to the strength of the Indian economy and the increasing participation of retail investors. Indicative of the economic strength, the GST revenue collection figures for March 1 revealed a collection of Rs 1,68,337 crore in February, marking a substantial 12.5 % increase compared to the previous year.

In the current bullish market environment, stock market pundits predict a continuation of the upward trend, anticipating the NSE index to reach 22500- 22600 points. However, experts caution investors to regularly review their investments and consider recovering profits, even if partially, from stocks showing significant gains.

The preceding week also demonstrated positive momentum in the Indian stock markets. Data reveals a substantial improvement, with the BSE index rising by 717.32 points to close at 73806.15, and the NSE Nifty index increasing by 165.70 points, closing at 22378.40. Interestingly, the midcap and smallcap indices exhibited a contrary trend, experiencing a decline in contrast to the growth of the base index.

FIIs have pivoted towards buying, having sold shares worth Rs 15962.72 crore in February. Domestic institutional investors (DIIs) responded by purchasing shares worth Rs 25379.30 crore during the same month. The bullion market also witnessed positive developments, with gold prices rising by Rs 1200 per 10 grams and silver prices increasing by Rs 700 per kg. Gold was priced at Rs 65,200 per 10 grams, while silver reached Rs 72,850 per kg. Traders expect continued improvement in the bullion market this week.

Market trends for nex week suggest a positive environment, influenced by positive GDP figures for the December quarter and improved GST collections. Traders believe in the market’s long-term strength, identifying safe stocks for investment, including Tata Chemical, India Bull Housing Finance, Swan Energy, Zomato, JSW Infra, State Bank of India, Tata Steel, SAIL, Jindal Steel, Hindustan Copper, Indus Tower, and Jio Finance.

Traders advise caution, acknowledging that market declines can serve as the foundation for a new upward trend. They emphasize the need to consider market sentiments, as even reputed stocks may face declines during periods of weak sentiment.

This week, investors have the opportunity to explore three new IPOs on the main board and five on the SME platform. Traders recommend thorough research on the financial condition of the companies and the premiums demanded before investing in new IPOs. Notably, among the new IPO applications presented to SEBI this week, no company has submitted its Draft Herring Prospectus-DRHP.

(This is author’s personal opinion. The author, his family members and acquaintances may have investments in the companies mentioned in article.)