Realty and auto stocks have driven the 9-session rally, bringing some cheer to investors. The Sensex closed the week at 60,431 points on Thursday, as it clocked gains of 2,817 points, or 4.89%, during the period. The Nifty zoomed 876 points, or 5.17%, to close at 17,828.
Foreign institutional investors (FIIs) pumped in a net Rs 9,824 crore or $1.2 billion during the nine days, signalling a positive shift in stance towards Indian equities. Largely on a selling spree, FIIs pulled out a net $6 billion in the whole of FY23.
In comparison, domestic investors bought to the tune of Rs 619 crore.
“Indian indices are moving largely in line with their global peers. There is a heightened confidence overseas that we’ve reached a peak in terms of interest rates. However, results of IT companies haven’t been up to the mark, which is why we may not follow the global trend for the next couple of sessions,” said Deepak Jasani, head of retail research at HDFC Securities.
There was a Rs 14-trillion rise in investor wealth during the nine-session rally, with the overall BSE market capitalisation reaching close to Rs 266 trillion as of April 13.
Among sectors, real estate topped the chart, with the BSE Realty index registering a 14.4% jump. This was led by expectations of a healthy sales growth in Q4, with the MPC’s decision to go for a pause in rate hikes coming as an added layer of comfort.
A report by ICICI Direct last week said the sales volume growth for realty players could show a healthy trend on the back of new launches. In addition, commercial leasing as well as the malls and hospitality segment are seen to be robust, with consumption remaining healthy.
Citing data by Anarock, the report said sales across the country’s top seven markets recorded an annual growth of 14% during Q4FY23. The brokerage anticipates a healthy momentum in sales of residential units thanks to sustained demand and new launches, despite the recent rate hikes.
The BSE Auto was the second-best performing index, as a strong showing by auto players drove an 8.19% gain. According to Jasani, this was led by the strong performance by Tata Motors. The Tata unit had last week reported an 8% rise in group global wholesales year-on-year, which included those of Jaguar Land Rover. Bottom-fishing in the two-wheeler segment on account of attractive valuations was another key factor.
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Of the 50 Nifty stocks, 49 showed an increase over the nine sessions, with BPCL being the only outlier. The stock of the oil and gas entity declined 2.16%. Three of the top five Nifty gainers were from the auto sector — Tata Motors, Bajaj Auto, and Eicher Motors — gaining 17%, 13%, and 12.5%, respectively.