The market ended the week on a positive note with Sensex and Nifty 50 gaining by nearly a percent. Foreign institutional investors (FIIs) made a buying of over ₹6,010 crore during the current week driven by a mega block deal in Adani stocks. On the other hand, domestic institutional investors (DIIs) invested more than doubled the amount as FIIs, by pumping in nearly ₹12,559 crore in the equities.
On Friday, FIIs inflow stood at ₹246.24 crore in Indian stocks, as per NSE data. While DIIs infused ₹2,089.92 crore.
FIIs were more net sellers in the current week than buyers, however, on Thursday they garnered an inflow of a whopping ₹12,770.81 crore which is most likely due to the mega-buying from foreign investors in four of Adani companies.
US-based GQG Partners purchased equity shares worth a massive ₹15,446 crore in a series of secondary block deals in Adani Enterprises, Adani Green Energy, Adani Ports, and Adani Transmission.
Due to Thursday’s inflow, FIIs overall week closed on a positive note with an inflow of ₹6,010.44 crore in Indian equities.
FIIs sold ₹2,022.52 crore on February 27, while the outflow was at ₹4,559.21 crore on February 28 and ₹424.88 crore on March 1st.
On the other hand, DIIs continued to stay as net buyers for eight consecutive days. This week, the inflow stood at around ₹12,558.91 crore from domestic investors.
On Friday, Sensex closed at 59,808.97 up by 899.62 points or 1.53%. While Nifty 50 ended at 17,594.35 higher by 272.45 points or 1.57%. During the trading session, both benchmarks clocked nearly 2% upside each.
In the current week, Sensex has climbed 1.3% and the Nifty 50 soared nearly 0.9%.
Mitul Shah – Head of Research at Reliance Securities said, “Indian equities ended higher led by banking and financial stocks, amid positive cues in global markets. Nifty was up 1.6%. Broader markets underperformed with Nifty Mid Cap and Nifty Small Cap gaining 0.7% and 0.8% respectively. All of the sectoral indices ended in the green. Nifty PSU Bank was the major gainer which climbed 5.4% followed by Nifty Metal and Nifty Bank which were up 3.6% and 2.1% respectively. Adani group stocks rallied post the block deal in the secondary market in four of the group stocks on Thursday between the promoters and a US-based investment firm.”
Shah added, “This improved the overall sentiment in the market and especially in the PSU banks. India’s services PMI expanded at the fastest pace in 12 years in Feb’23 on strong demand. The index rose from 57.2 in January to 59.4 in February. Strong growth in services activity boosted the composite index to 59.0 in February from January’s 57.5, despite manufacturing growth slowing to a four-month low.”
Looking ahead, the markets will closely track global cues over the next week, Shah said.