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| Photo Credit: Reuters
Benchmark indices extended their winning run on May 9, in the morning, helped by continuous buying from foreign institutional investors and on signs that recession fears in the U.S. are easing.
The 30-share BSE Sensex climbed 173.65 points to 61,937.90 in early trade. The NSE Nifty advanced 54.35 points to 18,318.75.
Among the Sensex firms, Bajaj Finserv, Tata Motors, Tata Steel, Titan, UltraTech Cement, Larsen & Toubro, Bajaj Finance, Axis Bank and HDFC were the major gainers. State Bank of India, HCL Technologies, ITC and Reliance Industries were the major laggards.
In Asian markets, Tokyo and Shanghai were trading in the green, while Seoul and Hong Kong quoted lower. The U.S. markets had ended on a mixed note on May 8.
“The biggest positive catalyst is that the recession fears in the U.S. are seen easing. Also, helping sentiments will be the fact that FIIs bought shares worth ₹2,124 crore while Domestic Institutional Investors (DIIs) too bought shares worth ₹245 crore,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Limited.
Foreign Institutional Investors (FIIs) were net buyers on Monday as they bought equities worth ₹2,123.76 crore, according to exchange data.
“There are three prominent factors which are driving the ongoing rally in the market: One, better-than-expected strength of the U.S. economy and the increasing confidence that the U.S. will succeed in avoiding a bad recession.
“Two, strong buying by FIIs who have been continuous buyers during the last eight trading days. Three, fundamental support to the rally from macro indicators such as robust GST collections, improving PMI, high fuel consumption and good credit growth,” said V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Meanwhile, global oil benchmark Brent crude dipped 0.42% to $76.68 per barrel.
The BSE benchmark had rallied 709.96 points or 1.16% to settle at 61,764.25 on Monday. The Nifty had climbed 195.40 points or 1.08% to end at 18,264.40.